Under Armour Has No. 1 App Mindshare Among Consumers

• Under Armour Inc UA shares are up 41 percent year-to-date, but have lost 4 percent since August 17.
• Piper Jaffray’s Erinn E. Murphy initiated coverage of the company with an Overweight rating and a price target of $113.
• Under Armour’s fitness platform took the first position in a women’s surbey, while the company gained market share in the apparel category, Murphy said.

According to Piper Jaffray’s Fall 2015 Women's Survey, 32 percent of the respondents indicated that they currently use a fitness app. “When looking at UA consolidated share across its major platforms, it took the No. 1 spot at 27% mindshare -22 percentage points alone ascribed directly to My Fitness Pal,” Murphy said.

Under Armour also bagged the second position in the apparel category, when ranking preferred athletic brands. Murphy added that the company had gained 400bps market share both sequentially and y/y. Nike, which ranked first, saw a deterioration in mindshare, by 400 bps sequentially and 200 bps Y/Y.

Moreover, Under Armour made it to the top 10 for preferred footwear from #14 only six months back, Murphy mentioned.

Under Armour is scheduled to host its analyst day on September 16. “We believe the company will likely stick with its longer-term revenue guidance of 20-25%, spend a decent amount of time discussing the digital opportunity as well as parsing out some of the international revenue drivers,” the Piper Jaffray report said.