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Investing.com — Under Armour (NYSE:UA) rose 5% after getting a slew of price target boosts from Stifel to Wedbush.
Stifel upgraded the stock to buy from hold, and bumped its price target to $17 from $11 on improved revenue expected ahead. The shares are currently trading around $12.71.
“Greater confidence stems from improved quality of revenue (DTC growth and off-price to 4% in 2020), sightlines to revenue inflection in 2021, gross margin drivers from mix and a streamlined expense base pointing to opportunity for earnings leverage,” said analyst Jim Duffy.
The divestiture of MyFitnessPal simplifies the business and results in a net cash position entering 2021, reducing risk. Duffy expects the company to profit next year.
On Oct. 30, Under Armour reported earnings per share of 26 cents, compared to the expected 3 cents, on sales of $1.43 billion, higher than the estimated $1.16 billion.
Five analysts say buy, 11 say hold and one says sell, according to data compiled by Investing.com.
