UPDATE: J.P. Morgan Upgrades Under Armour to Neutral, Raises PT on Upside Constraints

In a report published Tuesday, J.P. Morgan analyst Matthew R. Boss upgraded the rating on

from Underweight to Neutral, and raised the price target from $56.00 to $77.00. In the report, J.P. Morgan noted, “Given brand relevance, we believe ongoing product innovation (Charged Cotton technology created a $200M new business in two years), growth in footwear (every 1% of market share in just the running category represents an incremental $60M), growth in non-traditional distribution (department and specialty stores), and investments in the women's business (representing 29% of sales today) should continue to drive sales growth in North America (94% of sales). At only 6% overseas exposure, global expansion is a large opportunity with specialty door expansion an untapped growth vehicle over time. While we believe UA's top-line profile has improved (women's traction), we acknowledge heavy infrastructure investment necessary to build critical mass, particularly as the company expands overseas, is likely to constrain margin and bottom-line upside.” Under Armour closed on Monday at $79.45.