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Steph Curry Worth $14 Billion To Under Armour

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Morgan Stanley sees Steph Curry as a potential game-changer for Under Armour Inc (NYSE: UA).

"Morgan Stanley is bearish on Under Armour. But Steph Curry could change everything," a Business Insider article stated.

The Stamina Of Steph

NBA MVP Steph Curry has his name attached to the sports shoe business, with his signature shoe line "already bigger than the LeBron, Kobe, and every other player except Michael Jordan," said Morgan Stanley analyst Jay Sole.

While Morgan Stanley is bearish on Under Armour, the research firm has expressed Curry's potential to throw a wrench in the analyst's perception toward the company, "If Curry is the next Jordan, our call will likely be wrong."

Related Link: 5 Concerning Data Points Coming From Under Armour

"If Curry continues his streak, the difference in market-cap value of the company could be approximately $14 billion, with Under Armour being valued at about $14.1 billion under Sole's base case and $28.2 billion in his bull case," Business Insider explained.

Sole elaborated on the bull case for Under Armour, based substantially on Curry's success, "UA's total basketball business is probably double (in terms of sales) and even its non-Curry styles have grown at a super-high rate. The growth could be a result of UA taking share by underpricing its shoes.

"Or it could be a tipping point signaling the end of Nike's basketball dominance. If the latter is true or Curry becomes the next Michael Jordan, our call might be wrong no matter what UA does […] This will be especially true if the Curry effect is so strong, he puts a halo over the entire brand."

However, as Business Insider alluded to, if the hype surrounding the basketball great dwindles, or if the star loses his stamina on the court, Under Armour is likely to suffer, "But based on how Curry is playing right now, if anyone is going to do it, it's him."

Under Armour is up 4.28 percent year-to-date and up 12.38 percent over the past year. At time of writing, shares essentially flat on the day at $83.90.

Latest Ratings for UA

Feb 2018JP MorganMaintainsNeutralNeutral
Jan 2017CLSAInitiates Coverage OnBuy
Nov 2016Stifel NicolausMaintainsHold

View More Analyst Ratings for UA
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