Piper Jaffray Recommends Buying Under Armour (UA) on This Morning's Weakness
- Wall Street falls with financials, other post-election gainers
- The FTC Confirms Antitrust Charges Against Qualcomm (QCOM) for Monopolizing Semiconductor Device Used in Cell Phones
- United Airlines (UAL) Tops Q4 EPS by 5c
- Obama shortens sentence of Manning, who gave secrets to WikiLeaks
- After-Hours Stock Movers 01/17: (SHLO) Higher; (GIMO) (AFAM) (CSX) Lower (more...)
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Shares of Under Armour, Inc. (NYSE: UA) are down 15% in pre-open trade after the company provided a disappointing outlook. Piper Jaffray analyst Erinn Murphy, however, believes the sell-off is overdone and is recommending investors buy on weakness.
Murphy notes: "In the CFO prepared comments which were published, the company indicated FY17 and FY18 sales will be in the low-20% range and maintained its $7.5B 2018 sales guidance provided at the analyst day. That said, operating income growth is now planned to grow mid-teens for FY17 and FY18. This implies EBIT dollars in the low-$600M range by 2018 vs. the company's prior goal of $800M provided at the analyst day. The company is focused on investments in DTC (mobile, factory house footprint) footwear, new category growth (UAS) & international. In addition, mgmt. indicated that growth in apparel would be below the 20% rate indicated at their analyst day."
She commented, "While this is clearly below our expectations, we believe the sell-off in the stock is overdone and would be buyers on weakness."
Piper Jaffray Overweight price target of $44.00
Shares of Under Armour, Inc. closed at $37.90 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Alcobra (ADHD) PT Cut to $1.50 at Piper Jaffray as MDX P3 Misses
- Seaport Global Securities Upgrades Noble Energy (NBL) to Neutral
- Morgan Stanley Upgrades TransUnion (TRU) to Overweight, Named As Top Pick
Create E-mail Alert Related CategoriesAnalyst Comments, Trader Talk
Related EntitiesPiper Jaffray, Erinn Murphy, Pre Market Movers
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!