Under Armour's Stock Performing Better Than Its Athletes

Sunday’s end game of the NBA Finals wasn't only a battle between two teams, but one between two athletic conglomerates: Under Armour Inc UA and Nike Inc NKE. Business Insider’s Seth Archer reported how Nike underperformed Under Armour Monday, despite Nike’s lead athlete, Lebron James, defeating Under Armour’s top athlete, Steph Curry.

Related Link: 4 Sports Failures In 2016: An Under Armour Curse?

Although both companies did well Monday, Under Armour beat Nike by 1.15 percent in share price gains. Buckingham’s upgrade of Under Armour Monday morning explained the contradiction.

"We believe Under Armour is the best growth story in consumer goods," said Scott Krasik, analyst at Buckingham. Krasik upgraded the stock to Buy, while raising the price target from $44 to $48, implying a 29 percnet upside.

“Under Armour will turn from a company with $265 million of net debt at the end of FY15 to operating with approximately $1 billion of net cash by FY21," said Krasik.