UPDATE: Piper Sandler Upgrades Under Armour, Inc. (UAA) to Overweight

February 11, 2021 4:27 AM EST
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Price: $22.37 +5.37%

Rating Summary:
    9 Buy, 23 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 24 | New: 32
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(Updated - February 11, 2021 6:53 AM EST)

Piper Sandler analyst Erinn Murphy upgraded Under Armour, Inc. (NYSE: UAA) from Neutral to Overweight with a price target of $28.00.

The analyst comments "While shares have rebounded 30% YTD, we see another 25% from here and are upgrading shares from Neutral to Overweight as UAA's house is coming into order. Estimates are conservative and we believe management has left cushion in 2H--both on sales and gross margins. Most notable to us over the last year (and despite the pandemic) is the level of discipline around inventory, promo activity, cost controls (SG&A base now reset to $2.2B) while making small wins with product & marketing. We expect to receive some push back to this call including: i) why now?; ii) what's the appropriate "reset" revenue base/what's the right organic LT growth rate?; and iii) what's the next catalyst?. We attempt to answer these questions below. Shares of UAA remain the "most unloved" stock in our coverage and we see a series of sales & GM beats ahead. We raise our PT to $28 from $14."

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 $22.45 yesterday.

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