Sterne Agee Upgrades Under Armour (UA) to Buy; Pullback Crease Buying Chance
- Top 10 News for 8/25 - 8/29: S&P 500's New Record; U.S. Q2 GDP Outpaces Views; Major Mergers Aplenty
- Pressure on U.S. to Update Terror Alert System After U.K. Raises Terror Threat Level
- American Airlines Group (AAL)/Orbitz Worldwide (OWW) Reach Agreement; American Airlines Back on Orbitz Sites
- FTC Requests Additional Info from Reynolds American (RAI), Lorillard (LO) on Pending Deal
- Digital Ally (DGLY) Warns Lofty CEO Expectations May Not Be Attainable
Sterne Agee upgraded Under Armour, Inc. (NYSE: UA) from Neutral to Buy with a price target of $125, saying the recent pullback creases a buying opportunity.
Analyst Sam Poser said, "The brand's performance has remained strong through a very tough 1Q14. Apparel sales are the most robust. The Speedform Apollo running shoe has come out of the gate well, and progress is being made in footwear. The International business should reach 12% penetration within the next three years. It's time to step back in and buy UA."
The firm sees FY14 results setting up well. "We are forecasting 1Q14 EPS of $0.10 on revenue of $607M (+28.8%) compared to the Factset EPS and revenue estimates of $0.09 and $598M (+26.7%). We are forecasting FY14 EPS of $1.89 versus the Factset estimate of $1.85, and implied guidance of ~$1.79. We are forecasting a FY14 revenue increase of 23.7% versus the Factset estimate of +23.6%, and guidance of +22% to 23%. We expect the numbers to work their way up throughout the year. UA will report 1Q14 results on April 24, BMO."
Shares of Under Armour, Inc. closed at $104.33 yesterday.
You May Also Be Interested In
- UPDATE: Stifel Nicolaus Starts 3D Systems (DDD) at Buy; Analyst Sees H2 Rebound
- Jefferies Sees Two Developments Boosting Papa Murphy's (FRSH) EPS 20% in 2015
- UPDATE: Stifel Nicolaus Starts The ExOne Company (XONE) at Hold
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Hot Upgrades, Upgrades
Related EntitiesSterne Agee, Sam Poser
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!