FBR Profiles Under Armour's Next Stage Of Growth

Susan Anderson of FBR & Co. attended

"Connected Fitness Day" presentation hosted by the company's CEO Kevin Plank and Chief Financial Officer Brad Dickerson along with executives from its Record/MapMyFitness, Endomondo and MyFitnessPal platforms. "Under Armour believes that

exists for business networking and

for social, but there is a void when it comes to digital health and fitness," Anderson wrote. "We agree and believe successful companies of the future will be able to connect with customers in both the physical and digital realms." According to Anderson, Under Armour can drive value with its 120 million user base community by: (1) positioning the company's imagine to become a part of everyday life, (2) gathering valuable health and fitness data to drive monetization initiatives, (3) driving business to direct-to-consumer/wholesale partners with product suggestions and reminders to replace equipment, and (4) driving licensing revenues from partners. Anderson adds that as 2015 will be a year of investment and integration and that its digital fitness platforms will only begin to drive revenue in 2016 and more so in 2017. Bottom line, the analyst states that the company's digital initiatives are "bold steps" that could underpin its next stage of growth and increase its economic moat. Shares are Outperform rated with an $83 price target.