Use Under Armour (UA) Weakness as a Buying Opportunity, Sterne Agee CRT Says; PT Raised to $95

Sterne Agee CRT analyst Sam Poser reiterated a Buy rating and boosted his price target on Under Armour, Inc. (NYSE: UA) to $95.00 (from $85.00) following results this morning, saying they would use the sell-off as a buying opportunity.

Poser commented, "UA is our #1 pick for long-term growth investors. We would use today's sell-off as an opportunity to add to or start positions. UA is poised for revenue CAGR of ~22% over the next 5 years ($10B by 2020). The core men's domestic wholesale business remains strong, but growth will be driven by women's & kids' apparel, footwear, DTC and international expansion. Necessary investments are and will be made to support the growth. The acquisitions of new digital platforms and ongoing innovation will continue to enhance the Under Armour brand's relationship with current athletes and soon-to-be athletes. FY15 guidance will continue to increase as the year progresses."

The firm trimmed FY15 EPS estimates from $1.13 to $1.09, reflecting increased pressure from FX and West Coast port disruptions. They are raising FY16 EPS estimate from $1.48 to $1.53, as they are forecasting increased SG&A leverage in in 1H16.

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 $87.76 yesterday.

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