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UPDATE: Brean Capital Downgrades Under Armour, Inc. (UA) to Hold

May 4, 2016 6:58 AM EDT
Get Alerts UA Hot Sheet
Price: $6.94 -0.14%

Rating Summary:
    14 Buy, 24 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 14 | New: 22
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(Updated - May 4, 2016 10:19 AM EDT)

Brean Capital downgraded Under Armour, Inc. (NYSE: UA) from Buy to Hold and removed its price target. The change follows news Henry Stafford, Chief Merchandising Officer, and Robin Thurston, Chief Digital Officer, will leave Under Armour.

Analyst Eric Tracy commented on the downgrade, saying ,"We are moving to the sidelines on shares of UA, with our more cautious stance reflecting not only heightened risks to the model - both executionally on yesterday's announcement that Chief Merchandising Officer Henry Stafford and Chief Digital Officer Robin Thurston will leave the company in July (recall other prominent departures in recent months) and operationally (ongoing consolidation in athletic retail, a growth profile that's increasingly focused outside the core), but also the current premium valuation that leaves little room for error, in our view."

"While we remain believers in the LT UA story, we view risk/reward as relatively neutralized at current levels (shares trade 51x our FY17E EPS of $0.84), and accordingly, are lowering our rating to Hold," added the analyst.

For an analyst ratings summary and ratings history on Under Armour, Inc. click here. For more ratings news on Under Armour, Inc. click here.

Shares of Under Armour, Inc. closed at $42.73 yesterday.



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