Jefferies Lowers Price Target on Under Armour (UA), Shoe Market Off to a Strong Start
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Price: $5.15 --0%
Rating Summary:
14 Buy, 24 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
14 Buy, 24 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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Jefferies is maintaining its Hold rating on shares of Under Armour, Inc. (NYSE: UA) while lowering its price target from $75 to $70.
The company has relaunched its new and improved running shoe line with an add campaign called "Footsteps." The new consists of two new style, one being the Micro G Spit priced at $89.99 and the Micro G Impulse which is priced at $79.99 and is exclusively sold at Finish Line (Nasdaq: FINL).
The firm notes that retailers are more confident that the new lineup will sell better due to the cheaper pricing and as a result has better positioned them on the shoe walls. They are also more encouraged that sales are more evenly dispersed between genders and their different types of apparel products.
An analyst at Jefferies comments, "We are keenly focused on UA footwear but believe this is only part of a broader strategy taking place at the company. What used to be a compression/men's apparel concentrated story is now becoming more balanced across gender, category and channel. This season, we are seeing a louder backpack presentation ahead of back-to-school and trend-right Charged Cotton graphic tees in the mall. These observations further support our view that UA's brand is much better positioned to cultivate broader footwear acceptance than ever before."
Jefferies currently estimates 2011 and 2012 EPS of $1.78 and $2.14 on EBITDA of $202 million and $242 million.
Shares are currently trading down 1.23 percent or $0.81 to $65.15 following the opening bell.
For more ratings news on Under Armour, Inc. click here and for the rating history of Under Armour, Inc. click here.
Shares of Under Armour, Inc. closed at $65.96 yesterday.
The company has relaunched its new and improved running shoe line with an add campaign called "Footsteps." The new consists of two new style, one being the Micro G Spit priced at $89.99 and the Micro G Impulse which is priced at $79.99 and is exclusively sold at Finish Line (Nasdaq: FINL).
The firm notes that retailers are more confident that the new lineup will sell better due to the cheaper pricing and as a result has better positioned them on the shoe walls. They are also more encouraged that sales are more evenly dispersed between genders and their different types of apparel products.
An analyst at Jefferies comments, "We are keenly focused on UA footwear but believe this is only part of a broader strategy taking place at the company. What used to be a compression/men's apparel concentrated story is now becoming more balanced across gender, category and channel. This season, we are seeing a louder backpack presentation ahead of back-to-school and trend-right Charged Cotton graphic tees in the mall. These observations further support our view that UA's brand is much better positioned to cultivate broader footwear acceptance than ever before."
Jefferies currently estimates 2011 and 2012 EPS of $1.78 and $2.14 on EBITDA of $202 million and $242 million.
Shares are currently trading down 1.23 percent or $0.81 to $65.15 following the opening bell.
For more ratings news on Under Armour, Inc. click here and for the rating history of Under Armour, Inc. click here.
Shares of Under Armour, Inc. closed at $65.96 yesterday.
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