Longer-Term Nike (NKE) Outlook Not Enough to Lift Under Armour's (UA) Spirits
Under Armour (NYSE: UA) share remain lower Wednesday following guidance from athletic apparel rival Nike (NYSE: NKE).
Earlier this afternoon, Nike said it was targeting revenue of $50 billion by the end of 2020. Notably, the company reported revenue of $30.6 billion for fiscal 2015 and analysts see revenue of $32.8 billion for FY16. CAGR on the outlook is about 10.3 percent, which means the company will need to step it up from the 10 percent top-line growth realized over the last two years.
Comparably, UA has seen top-line growth of 29.7 percent per year over the last two years, with 2014 results showing improvement versus 2013.
Today, Canaccord Genuity lifted its price target on UA from $105 up to $130, but shares are seeing pressure as Piper Jaffray also downgraded the stock from Overweight to Neutral late Tuesday.
Shares of UA are down over 3.4 percent.