Piper Jaffray Recommends Buying Under Armour (UA) on This Morning's Weakness
- Unemployment Rate Drops to 4.6%
- Unusual 11 Mid-Day Movers 12/2: (ASNA) (HTBX) (REPH) Higher; (PLX) (MEMP) (DRYS) Lower
- Bond yields fall on U.S. jobs data, euro flat before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium 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
- Under Armour (UA) Hits New 52-Week Low as Shares Dip Below $30
- Jefferies Cuts Price Target on PG&E Corp. (PCG) to $65 Following Rate Case Decision
- Jefferies Cuts Price Target on Kroger (KR) to $30 Following 3Q and Guidance
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!