Stifel Reiterates Buy Rating on Under Armour, Inc. (UAA)

Stifel analyst Jim Duffy reiterated a Buy rating and $11.00 price target on Under Armour, Inc. (NYSE: UAA).

The analyst commented, "Reclaiming the President and CEO role, founder Kevin Plank inherits a strategy he helped shape but a lagging turnaround. Public market investors are thirsty for North America inflection but skepticism is reflected in the lowest valuation in our coverage (5.7x EV/EBITDA and 0.4x EV/S on CY24E). Balance sheet strength including greater than $1bn in cash, however, presents optionality attractive to value oriented investors conceivably including private equity. Considering options for Mr. Plank to balance maximizing economic interest with control and protection of his legacy, we evaluate three different scenarios including an LBO goprivate transaction. Scenarios highlight multiple paths to compelling multi-year returns but Mr. Plank’s multi-faceted interests are likely best served borrowing to repurchase shares in the public markets. With conservative growth, gearing (net leverage 1.5x or lower), and multiple assumptions we see a public market path to 28% plus annualized returns over the 5-year period."

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 $6.55 yesterday.

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