Zacks Investment Research cut shares of Under Armour, Inc. (NYSE:UAA) from a hold rating to a sell rating in a report released on Thursday morning.
According to Zacks, “Under Armour has underperformed the Zacks categorized industry in the past one year. Of late the company has been grappling with higher interest expense on account of increase in debt level. Further, Under Armour projects an increase in interest expense to approximately $30 million in 2016. This may weigh on the company’s bottom-line, thus posing concern. However, despite the prevailing headwinds, Under Armour’s sustained focus on brand development, expansion of its DTC business, product innovation and foray into the technology-based fitness business bode well, as it registered revenue growth of over 20% for the past 26 straight quarters. Net revenue surged 22.2% during the the third quarter of 2016. Management continues to envision net revenue to increase approximately 20% in the fourth quarter and 24% in 2016. Estimates have been stable lately ahead of the company’s fourth quarter earnings release.”
A number of other analysts have also weighed in on UAA. B. Riley restated a buy rating and issued a $51.00 target price on shares of Under Armour in a research note on Wednesday, October 19th. Canaccord Genuity set a $65.00 price target on Under Armour and gave the stock a buy rating in a research report on Friday, October 21st. Mizuho set a $52.00 price target on Under Armour and gave the stock a buy rating in a research report on Friday, October 21st. Piper Jaffray Companies reaffirmed an overweight rating and set a $41.00 price target (down previously from $44.00) on shares of Under Armour in a research report on Wednesday, October 26th. Finally, FBR & Co reissued an outperform rating and set a $39.00 target price on shares of Under Armour in a report on Wednesday, October 26th. Two research analysts have rated the stock with a sell rating, fifteen have assigned a hold rating, sixteen have assigned a buy rating and one has assigned a strong buy rating to the stock. The stock has an average rating of Hold and an average target price of $44.50.
Under Armour (NYSE:UAA) traded down 0.45% during midday trading on Thursday, reaching $29.00. 1,681,646 shares of the company traded hands. The company has a 50-day moving average price of $30.18 and a 200-day moving average price of $35.68. The company has a market cap of $12.71 billion, a price-to-earnings ratio of 64.44 and a beta of 0.10. Under Armour has a 12-month low of $28.29 and a 12-month high of $47.95.
Under Armour Company Profile
Under Armour, Inc is engaged in the development, marketing and distribution of branded performance apparel, footwear and accessories for men, women and youth. The Company’s segments include North America, consisting of the United States and Canada; Europe, the Middle East and Africa (EMEA); Asia-Pacific; Latin America, and Connected Fitness.
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