Sterne Agee CRT: Under Armour (UA) 'Remains our #1 pick for long-term growth investors'; Reiterates Buy Following 1Q
Sterne Agee CRT reiterated a Buy rating and $60.00 price target on Under Armour, Inc. (NYSE: UA) following the company's 1Q earnings report. Footwear sales increased 64.2% in 1Q16 and only constitute 25% of total sales. Footwear ASPs are expected to increase HSD during FY16. In May, UA will release the Curry 2.5 for $135 exclusively through Foot Locker and UA's own e-commerce channel, and on July 1 the shoe will launch globally.
Analyst Sam Poser commented, "UA remains our #1 pick for long-term growth investors. UA's management has patience, and puts the brand first at all costs through its vision to make all athletes better. 1Q16 revenue increased 30.2%. The strength is broad-based across categories and geographies. North America is not mature, and has room to expand distribution from the 11K points of distribution. For comparison, Nike has 24K points of distribution in North America. International revenue opportunities remain robust, even following 9 consecutive quarters of 40% YOY increases. Revenue guidance was raised from a 25% increase to a 26% increase, which we view as conservative. Raising FY16/17 EPS estimates from $0.64/$0.87 to $0.67/$0.90."
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 $43.95 yesterday.