Mizuho Securities Downgrades Under Armour, Inc. (UA) to Neutral Citing Structural Margin Challenges
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
Mizuho Securities downgraded Under Armour, Inc. (NYSE: UA) from Buy to Neutral with a price target of $32.00 (from $52.00), citing structural margin challenges.
Analyst Betty Chen commented, "We are downgrading UA to Neutral and lowering our estimates and PT to $32 to reflect unexpected margin challenges from a structural change in the business. While management reiterated FY16/FY18 sales targets, we are disappointed by EBIT reduction due to: 1) commentary for flattish gross margins in FY17- FY18 due to category mix, 2) significantly lower than expected margin within footwear, and 3) unexpected plans to invest in talent/infrastructure in order to capitalize on the momentum in footwear and Int’l. Given the delayed profitability trajectory and UA’s premium multiple, we expect the shares to remain range-bound."
Shares of Under Armour, Inc. closed at $32.89 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Broadcom (AVGO) PT Raised to $215 at Oppenheimer
- Oppenheimer Raises Price Target on CarMax (KMX) to $72 Ahead of 3Q
- BMO Capital Cuts Price Target on Cooper Cos. (COO) Following 4Q Results
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change, Downgrades
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!