In a report published Friday, KeyBanc Capital Markets analyst Edward Yruma upgraded shares of Under Armour Inc UA to Sector Weight from Underweight with no assigned price target versus a previous price target (established on July 9) of $53 following the company's second quarter results.
According to Yruma, Under Armour is "one of the best" growth companies under his coverage, as it continues to innovate in apparel functionality and casual offerings. The analyst noted that the apparel category has grown at a 20 percent plus rate for the past 23 consecutive quarters, with the second quarter's growth coming in at 23 percent.
Apparel Segment
Roster Of Marquee Athletes
Yruma also commented that Under Armour has done an "outstanding" job in building its roster of marquee athletes. The analyst singled out the footwear category that gained more than 40 percent in the quarter. Stephen Curry led the Golden State Warriors to the NBA championship and Under Armour's relationship with the all-star served as proof it can "strike the balance of a marquee athlete, compelling design and scarcity that underpins some of the most successful basketball shoe families."
On The Downside
Now And Beyond
"We would still prefer to be tactical on a pullback, but strong companies should carry premium valuations, and we see no reason why this should be different," Yruma concluded.
Image Credit: Public Domain© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.