UPDATE: UBS Upgrades Under Armour, Inc. (UAA) to Buy

UBS analyst Jay Sole upgraded Under Armour, Inc. (NYSE: UAA) from Neutral to Buy with a price target of $36.00 (from $26.00).

The analyst comments "Roughly 6,600 bps of the PT change is due to a higher FY23 EPS outlook. At the same time, we lower the P/E used to value UAA to 36x from 44x. Before, our valuation reflected a view UAA's EPS would grow significantly over the long-term. Now, the growth is happening sooner than expected, so we adjust our P/E for what the growth outlook will look like from FY23 (mid-teens EPS growth). Our multiples analysis indicates a $36 PT puts UAA's valuation in-line with peers in terms of P/E, P/Sales, and FCF yield. Lastly, our DCF analysis also supports a $36 PT."

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 $23.88 yesterday.

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