Under Armour's Investing Day: Catalyst?

• Under Armour Inc UA shares are down 4 percent year-to-date, even after hitting a high of $101 on August 18.
• Canaccord Genuity’s Camilo Lyon maintained a Buy rating for the company, with a price target of $105.
• While Under Armour must incorporate a deliberate segmenting strategy, Lyon believes that the company’s investor day presentation will serve as a catalyst for the stock.

Under Armour is scheduled to host its investor day presentation on September 16. The company is expected to provide an update to its three-year sales and EBIT dollar growth targets. Analyst Camilo Lyon expects both to be in the 20-25 percent annual growth range.

Lyon enumerated two key focus areas for Under Armour, which would enable it to continue to generate outstanding growth rates:

1. Segmenting product and channel strategies
2. Monetizing its connected fitness digital platform

In the report Canaccord Genuity noted, “We view segmenting as crucial to the brand's future growth prospects…For UA to reach $10B in sales over the next five years as we believe it can, UA must incorporate a more deliberate segmenting strategy.”

Lyon believes while the company has successfully expanded its distribution channels, more could be done to “leverage the broader distribution avenues,” such as specialty chains and mid-tier channels.

Under Armour’s Connected Fitness digital strategy is also expected to be of “high interest and importance” as the company goes on adding to its substantial user base of 140 million users. The platform will provide Under Armour with a “massive commercial opportunity, if executed correctly,” Lyon added.

“With no other company in our universe growing at such an impressive and consistent rate, we reiterate our BUY on UA,” Lyon reported.