Recent Investor Concerns In Under Armour 'Overblown'

The latest near-term investor concerns in Under Armour Inc UA are "overblown," according to a Barclays note released Thursday. Analysts noted that their latest Under Armour model supports a "high growth trajectory," with the company having a "foreseeable future" along with high success probability.

Barclays reiterated an Overweight rating and $110.00 price target for Under Armour.

Despite any of the inflated investor concerns, Barclays highlighted that Under Armour had a 28.1 percent share price decline over the last four months, and it was estimated as the "3rd largest pullback" in the company's history alone from its "solid" fundamentals. The firm also sees this as an "attractive" entry point.

"We believe partnered stores is most overlooked today by many investors, which in isolation could contribute $1.76 in incremental EPS by FY20," Barclays noted.

Under Armour recently announced that it will be planning 700 partnered stores to be opened by FY18. Barclays analysts believe that growth could reach up to 1,060 by FY20. The firm also sees this growth in relation to the partnered store openings as "highly likely to materialize" and comes with "substantially reduced risk" to UA than the DTC channel.

Shares traded recently at $69.32, up 2.9 percent.