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Here's Why Under Armour Is One Of The Best Growth Stories In Retail

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Here's Why Under Armour Is One Of The Best Growth Stories In Retail
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In a report rolled out Tuesday, Canaccord analysts Camilo Lyon and Pallav Saini reiterated a Buy rating and a $97 price target on Under Armour Inc (NYSE: UA).

The firm views Under Armour as “one of the best growth stories in retail.” Under Armour is scheduled to report its first quarter financial results next Tuesday, April 21. Analysts are expecting another strong quarter “that reflects the robust sales growth trajectory UA is on.”

Canaccord is modeling EPS of $0.04, below consensus of $0.05, on sales growth of 25 percent, driven by footwear, which they expect to account for 14 percent of sales, international (9 percent), and women's (30 percent).

Related Link: Masters Champ Jordan Spieth Boosts Under Armour

The firm recently ran store checks and discussed the business with its retail contacts. These “have indicated strong full price selling in both footwear (basketball and running) and apparel (training and outdoor).” In fact, the analysts believe upside to their sales estimates “could come from outsized growth in footwear as the Curry One and Speedform Gemini have been very well received by consumers.”

Furthermore, the analysts expect to see “accelerating gains internationally as UA continues to drive increased brand awareness, particularly in Europe.”

Bottom line, Canaccord anticipates the first quarter will showcase again “the momentum UA is generating across categories (footwear and apparel), channels (DTC and w/s) and regions (Europe, Latin America, and Asia).”

Shares of Under Armour traded recently at $83.99, down 1.3 percent. The stock closed Monday at an all-time high.

Latest Ratings for UA

DateFirmActionFromTo
Jan 2017CLSAInitiates Coverage OnBuy
Nov 2016Stifel NicolausMaintainsHold
Oct 2016MizuhoDowngradesBuyNeutral

View More Analyst Ratings for UA
View the Latest Analyst Ratings

Posted-In: Camilo Lyon Canaccord Curry One Pallav Saini Speedform GeminiAnalyst Color Reiteration Analyst Ratings Best of Benzinga

 

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