Under Armour Inc (NYSE: UAA) is having a
tough 2017. With shares
down 35 percent year-to-date, Baird Equity Research analysts are suggesting that investors may be best served to remain patient
in the near term.
With expectations that are dramatically lower, Baird is hopeful that Under Armour can gradually get back to meeting/exceeding
expectations, “as efforts re-focus behind key sales and margin initiatives eventually take hold.”
A Return To Met Expectations
Given well-noted challenges the company is facing, investors appear to be braced for soft first-quarter results when the company
reports earnings on April 27. Baird is placing even greater focus on management’s tone and confidence in the company’s outlook,
which appears to be acting with a greater sense of urgency given considerable
headwinds.
“While sales and margin initiatives likely will take time to impact the business, we have been pleased by recent signs that UA
is re-focusing around the core business, re-setting key platforms, and hopefully increasing speed to market for newer platforms,
including efforts to bolster
the lifestyle offerings that lag peers," said Baird analysts.
Baird Equity research is modeling flat apparel growth in Q1, but is aiming for 20 percent footwear growth, which would still be
the lowest growth quarter since early 2011.
Despite the near-term challenges facing Under Armour, Baird expects the stock to bounce back and return to exceeding
dramatically lowered expectations. “With valuation no longer reflecting a sizable premium relative to Nike Inc
(NYSE: NKE), we are sticking with UA.”
Baird Equity Research maintains an Outperform rating on Under Armour with a $25 price target.
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Image Credit: By Maryland GovPics (Under Armour Opening) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons
Latest Ratings for UAA
Date |
Firm |
Action |
From |
To |
Apr 2017 |
Wedbush |
Initiates Coverage On |
|
Neutral |
Apr 2017 |
FBR Capital |
Downgrades |
Market Perform |
Underperform |
Mar 2017 |
Jefferies |
Upgrades |
Hold |
Buy |
View More Analyst Ratings for
UAA
View the Latest Analyst Ratings
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