Janney Montgomery Scott Upgrades Under Armour, Inc. (UA) to Buy

Janney Montgomery Scott upgraded Under Armour, Inc. (NYSE: UA) from Neutral to Buy with a price target of $55.00.

Analyst Eric Tracy comments, "On broader market pullback and company-specific multiple compression, we upgrade our rating on UA to Buy. Since the recent high (3/19), shares are off roughly 24% vs. S&P 500 flat. At 39x our FY15 EPS estimate, shares are trading at a 15% discount to its 2-year average (and in line with its 5-year historical), presenting us with a long-awaited opportunity to get more constructive with our rating, as UA is positioned over the next 12-24 mos to realize the benefits of investments in its supply chain, drive the multi-pronged domestic apparel growth (deeper penetration of the core, new wholesale distribution, women's/youth and DTC), while also accelerating footwear (Spine evolution, SpeedForm launch) and int'l, all of which should support upside to the planned top line (FY14 rev guide of +24% to +25%). With a highly uncertain market, multiple compression represents the greatest risk to shares, in our view; however, based on UA's superior growth profile relative to peers, a significant premium to the group is warranted (see page 9). Our $55 FV (17% potential upside from current levels) is based on shares trading at 45x our FY15 EPS estimate of $1.20."

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 $47.17 yesterday.

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