UPDATE: Piper Sandler Upgrades Under Armour, Inc. (UAA) to Overweight
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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."
Shares of Under Armour, Inc. closed at $22.45 yesterday.
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