Under Armour Investor Day: Strong U.S., Plans for International Expansion
In an exclusive interview on Wednesday, CNBC brought along Under Armour (NYSE: UA) CEO Kevin Plank and special guest Tom Brady for questions regarding Under Armour's current growth, Brady's influence on the company, and last but not least, Under Armour's plans to tap into the European market.
When asked about the sustainability of Under Armour's impressive growth, Plank stated plans to double Under Armour's 2012 revenues of $2 billion to $4 billion by 2016 by expanding Under Armour's international presence and its women's product lines. In order to appeal to potential European customers, Under Armour plans to give soccer players more endorsements and gain more exposure.
CNBC also asked Tom Brady why he chose Under Armour as his sponsor, to which Brady replied, “I looked around the locker room, I looked around what was going on in high school with the younger kids… and it was all Under Armour. I couldn't have made a better decision being around Kevin and developing a relationship with him over the past three and a half years. I'm very privileged to be a small part of this company and I'm really looking to see those growth goals that he set out as a shareholder these last three years.”
Despite the optimistic outlook toward Under Armour presented by Kevin Plank and Tom Brady in the interview, many banks covering Under Armour gave the company more Neutral ratings. Said banks include: J.P. Morgan, Piper Jaffray, Goldman Sachs and Morgan Stanley. Bank of America stood against the pack with a Buy rating and a price target of $68.00, citing Under Armour's emphasis on sports performance as opposed to fashion and the lack of saturation compared to competitors such as Nike in urban areas as potential upside for the company.
Under Armour stock closed at $59.64 on Wednesday, down 3.09 percent from its Tuesday close of $61.54.
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