Canaccord Genuity Reiterates Buy on Under Armour on Misplaced Product Quality Concerns
In a report published Wednesday, Canaccord Genuity analyst Camilo Lyon reiterated a Buy rating and $68.00 price target on Under Armour (NYSE: UA).
In the report, Lyon noted, “UA was off 3.5% yesterday on what we believe were spill over product quality concerns stemming from a supplier that also manufacturers product for lululemon athletica (LULU : NASDAQ : $64.08 | BUY). While the root cause of LULU's too-sheer pants is still unknown, we believe those issues are unique to LULU and not a systemic problem at the manufacturing level. To our knowledge, UA has suffered no production quality problems and therefore any attribution of the like is misplaced. UA is attending a conference at which we believe they will reiterate this thinking and as such, we would use the weakness as a buying opportunity.”
Under Armour closed on Tuesday at $48.48.
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