Under Armour Could Surprise Adidas In Europe

With much of Under Armour Inc UA growth potential outside the U.S., Citi Research conducted a survey of European independent retailers to determine their views of the brand. According to the results, 90 percent of retailers sell Under Armour apparel, while just 60 percent sell its footwear.

However, the most surprising results from Citi's survey may be that Under Armour is the second-highest selling brand, behind Nike Inc NKE, but ahead of adidas AG ADDYY.

Based on the international potential, Citi reiterated its Buy rating on Under Armour with an $88 price target – reflecting more than 10 percent upside from Monday's close at $79.91. The buy recommendation is based on three driving factors:

1. Additional "room for expansion in the U.S.
2. The fact that the "international opportunity is greater than ever."
3. Continued execution on management's three-year plan.