Market Overview

Under Armour: Pursuing Anything, But Not Everything

Share:
Under Armour: Pursuing Anything, But Not Everything

Jonathan Komp, an analyst at Baird, recently met with Under Armour Inc (NYSE: UA)'s Chief Financial Officer Chip Molloy and Director of Investor Relations Carrie Gillard.

Komp stated in a research report following the meeting that he believes Molloy will bring a "disciplined approach to prioritizing the highest-impact growth initiatives" while simultaneously playing a role in optimizing the company's supply chain and infrastructure.

Specifically, Molloy will pursue an "anything but not everything" strategy by bringing his process-led approach to prioritizing the many whitespace opportunities across various geographies, channels and categories.

Related Link: Piper Jaffray Downgrads Nike As Adidas And Others Have Hurt Its Growth

Komp continued that Under Armour's overall focus right now is growing revenue but margin growth is a "second-hand consideration." Long-term shareholders should approve of this notion, as the company is still in the early stages of a global brand adoption.

Komp also pointed out that he toured the new 35,000 square foot UA Lighthouse manufacturing center, which "could prove disruptive" given the facility's new technologies that can enhance the design process.

Komp also stated that Under Armour is well positioned to deliver on its bottom half of 2016 expectations (21 percent revenue growth) and over the longer term, the company's 2018 targets ($7.5 billion in revenue and an operating profit of $800 million) are "intact." After 2018, the company's cash flow and ROIC metrics "should improve."

Shares remain Outperform rated with an unchanged $55 price target.

At time of writing, Under Armour was down 2.17 percent on the day at $38.41.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for UA

DateFirmActionFromTo
Feb 2020Credit SuisseMaintainsNeutral
May 2019JP MorganUpgradesNeutralOverweight
Feb 2018JP MorganMaintainsNeutralNeutral

View More Analyst Ratings for UA
View the Latest Analyst Ratings

 

Related Articles (UA)

View Comments and Join the Discussion!

Posted-In: Apparel Companies apparel stocks BairdAnalyst Color Long Ideas Reiteration Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

StockFirmActionPT
CYTKHC Wainwright & Co.Maintains38.0
COLLBWS FinancialInitiates Coverage On8.0
XYLRosenblattUpgrades85.0
BFYTCanaccord GenuityDowngrades31.0
NFLXWedbushMaintains220.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com