UPDATE: Sterne Agee Reiterates Buy Rating on Under Armour on Strong Earnings Multiple

In a report published by Sterne Agee, analyst Sam Poser reiterated a Buy rating and $64 price target on Under Armour UA. Sterne Agee reported that, “Retailers are generally looking to UA to be the #2 player and are working closely with the company to achieve that. Dick's Sporting Goods (DKS-$47.15-Buy), UA's largest wholesale customer (16% of TTL sales), said that they are adding 70 All America Shops in 2013 to the base of 97 shops. We estimate that DKS is planning the UA business up by ~20%, which would equate to an increase of ~3% to UA. DKS said that UA shops could expand to 75%- 80% of its store base. Foot Locker (FL-$32.85-Buy) recently made positive comments about UA. We estimate that the DKS and FL businesses alone will provide between 4%-5% growth for UA in 2013. Other retailers including Hibbett (HIBB-$51.59-Buy), Finish Line (FINL-$18.54-Neutral), and Modells are planning the UA business up double digits in 2013. There also continues to be significant growth opportunities in department stores and international markets.” Shares of Under Armour closed at $40.68 on Tuesday.