Under Armour One Of Retail's 'Best' Growth Stories; Morgan Stanley Raises Estimates

Loading...
Loading...
In a report published Friday, Morgan Stanley analyst Jay Sole maintained an Equal-weight rating on
Under Armour, Inc.UA
, while raising the price target to $74. The analyst believes that the 2Q EPS points towards an incrementally favorable long-term outlook for the company. "UA's P/E is at peak, but two factors could send it higher still - 1) margins could rise sooner than expected and 2) the connected fitness strategy path to profitability could materialize," analyst Sole stated, while mentioning that the September analyst day could prove to be a catalyst for the stock. The company has raised its full year revenue guidance, partly driven by its incremental marketing initiatives that aim to capitalize on the brand momentum resulting from the success of sponsored athletes. The analyst believes that there could be further upside to the revenue, with the sales momentum generating opex leverage. The analyst believes that Under Armor is "one of Retail's best growth stories," and that the company could become a $10 billion global brand over time, while continuing on the path to become "the world's number two athletic brand." The FY15 EPS estimate has been raised on expectations of continuing sales momentum.
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPrice TargetAnalyst RatingsMorgan Stanley
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...