Under Armour (UA) Supply Issues Make Analysts Caution About Q3

UBS maintained a Neutral rating on Under Armour, Inc. (NYSE: UA) and raised their price target to $57.00 (from $54.00).

Analysts said "While consumer demand for UA brand remains strong we believe revenue upside is limited in 3Q amid evidence of supply chain constraints in the quarter. We believe UA’s current P/E premium implies stock expectations for upside to consensuses estimates in 3Q."

Despite third quarter issues, analyst believe Under Armour has potential for significant upside to 4Q street estimates.

"We believe that new innovation is resonating well with consumers. New shop in shops are driving productive gains, and lapping unfavorable winter '11 weather should be a 4Q tailwind," said analyst, adding that "While 3Q concerns remain, we will monitor channel signs for improving deliveries that cause us to embrace our positive outlook for 4Q and beyond."

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 $56.45 yesterday.

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