Piper Jaffray Upgrades Under Armour, Inc. (UA) to Overweight
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
- General Electric (GE) Tops Q3 EPS by 2c; Updates FY16 EPS Outlook
- Microsoft (MSFT) Tops Q1 EPS by 8c
- Oil rises on Russia's output freeze commitment
- AMD (AMD) Posts Q3 Operating EPS of 3c; Sees Q4 Revenue Down Sequentially
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
Piper Jaffray upgraded Under Armour, Inc. (NYSE: UA) from Neutral to Overweight with a price target of $44.00 (from $40.00).
Analyst Erinn E. Murphy commented, "We are upgrading UA from Neutral to Overweight on the heels of our 32nd semi-annual Taking Stock With Teens survey. While we are leaving our estimates unchanged, we are raising our multiple from 55x to 60x our FY17 EPS on the belief that UA shares are poised for re-accelerated global growth. From an industry perspective, the sporting goods channel is less noisy than when UA pre-announced on 5/31. Further, we believe UA's inventory is in good shape, noting Q2's inventory growth of 30% vs. sales growth of 28%. Going forward, we see four positive catalysts: 1) uptrend in athletic footwear; 2) improved traction in women's; 3) accelerating international growth with profitability inflecting; and 4) Kohl's roll-out which we believe can be $150-$200M next year. Importantly, UA did not guide its 2H to assume a "cold winter." Should cold weather materialize, we see upside to the top-line."
Shares of Under Armour, Inc. closed at $38.52 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Nomura Securities Upgrades Chesapeake Energy (CHK) to Neutral
- Wedbush Cuts Price Target on Tractor Supply (TSCO) to $65 Following 3Q
- E*TRADE (ETFC) PT Raised to $33 at Nomura Post Q3
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Hot Upgrades, Upgrades
Related EntitiesPiper Jaffray, Erinn Murphy
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!