Pivotal Upgrades Under Armour Due To 'Disconnect Between Reality And Sentiment'

While Under Armour Inc UAA seems to be better positioned now than it was pre-pandemic, this is not reflected in its stock, according to Pivotal Research.

The Under Armour Analyst: Mitch Kummetz upgraded Under Armour's stock from Hold to Buy, while raising the price target from $15 to $20.

The Under Armour Thesis: There seems to be a “disconnect between reality and sentiment” for the company’s stock, Kummetz said.

The analyst mentioned a few reasons for believing that Under Armour is “better off today than before COVID.” The pandemic has boosted athletic demand, “which is a rising tide for UAA."

Moreover, the pandemic had also accelerated the adoption of ecommerce, “which favors apparel/footwear vendors in general,” Kummetz wrote. He also believes the competitive landscape is less ominous than it was before the pandemic.

“While UAA’s shares have had a nice bounce since March, they are basically in line with where they were before COVID, and this price action is worse than the average peer apparel/footwear vendor and much worse than the average peer athletic company,” the analyst wrote in the note.

UAA Price Action: Shares of Under Armour opened Monday's session at $17.56 and traded around $17.17 at the time of publication.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorUpgradesPrice TargetAnalyst RatingsMitch KummetzPivotal Research
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!