Piper Jaffray Remains Cautions Near-Term on Under Armour (UA) - PT to $64

Piper Jaffray maintained a Neutral rating on Under Armour, Inc. (NYSE: UA), and cut the price target to $64.00 (from $88.00), on near term concerns. While shares have come in 36% since their recent high, the market environment is that where high multiple names are still having a difficult time finding their footing on less-than-pristine reports.

Analyst Erinn Murphy commented, "We remain cautious on UA near-term given current valuation as well as our concerns on footwear inventory in the channel, challenges with a key retail partner (Sports Authority) and the lingering impacts of a significantly warmer winter season. While shares have come in 36% since their recent high, we are not in a market environment where high multiple names are finding their footing on less-than-pristine reports. UA is still trading at 53x FY16 EPS--at a PEG of 2.1x our EPS. As it relates to Q4, we are 2 cents below the Street--$0.44 vs. $0.46. While we believe a gross margin "miss" and lackluster apparel growth is largely anticipated by the Street, we believe UA's inventory vs. sales growth gap will widen from Q3. We'd expect mgmt to reiterate (not raise) its FY16 guidance (25% sales; 23% EBIT growth) but see risk to the Street's Q1 and FY16 EPS."

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 $68.16 yesterday.

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