From Standard & Poor's Equity Research
Thomas Weisel upgraded its investment recommendation on shares of Under Armour (UARM) to outperform from peer per from.
Analyst Jim Duffy says he is impressed with the company's track record to date and compelled by long list of near-term market opportunities. He believes the company deserves to be viewed as entity with a legitimate claim to a stake of $92 billion combined with global market for athletic apparel and equipment. While he expects Under Armour to remain committed to building its brand and to reinvest accordingly, Duffy sees potential for gross margin improvement, and the leverage of fixed expense and brand ad expense over a +larger product portfolio. The analyst says that with this, he sees potential for EPS power beyond current forecasts. He has a $40.94 per share fair value estimate.