UPDATE: D.A. Davidson & Co. Reiterates on Under Armour as 3Q Revenue Beats Consensus

In a report published Friday, D.A. Davidson & Co. analyst Andrew Burns reiterated a Neutral rating on

, and raised the price target from $85.00 to $88.00. In the report, D.A. Davidson & Co. noted, “3Q revenue handily beats consensus, fuels $0.02 EPS upside. UA reported revenue and EPS of $723.1 million and $0.68, compared to consensus of $710.2 million and $0.66 and our estimates of $707.6 million and $0.64. EPS increased 26% year-over-year (y/y) driven by apparel up 26%, footwear up 28% and accessories up 18%. Direct-to-consumer (DTC) sales rose 34% y/y. Gross margin decreased 33bp y/y to 48.4%, primarily driven by higher import duties (-90bp) and higher product costs (-30bp), partially offset by supply chain benefits (+70bp). SG&A of $229.3 million deleveraged to 31.7% (32.9% in 3Q12).” Under Armour closed on Thursday at $79.98.