Under Armour Decline May Be Buying Opportunity, Janney Says

On Wednesday, Janney Capital upgraded the stock from Neutral to Buy and lowered the price target from $170 to $125. Analyst Eric Tracy sees the recent 24 percent decline as a buying opportunity as the company is “positioned over the next 12-24 months to realize the benefits of investments in its supply chain, drive the multi-pronged domestic apparel growth, while also accelerating footwear.” The greatest risk to shares of Under Armour is multiple compression, according to Tracy, but “based on UA's superior growth profile relative to peers, a significant premium to the group is warranted.” Shares experienced a pop on the upgrade, which was released mid-session, to $49.89, but the share were sold off hard into the close, now only up 2%.