Canaccord Genuity Reiterates Buy on Under Armour (UA) Following Investor Day

Canaccord Genuity reiterated a Buy rating and $105.00 price target on Under Armour, Inc. (NYSE: UA) following the company's investor day. UA released 2018 targets that call for $7.5B in revenue and $800M in EBIT. It also puts UA within striking distance of $10B in 2019.

Analyst Camilo Lyon commented, "It is well understood that UA's multiple is difficult for most to look past; however as we have stated often, when presented with the vast growth opportunities across geographies, categories, channels, and now industries (e.g. technology and healthcare) as we were at yesterday's Investor Day, it is clear that UA has a long runway of elevated and outsized growth to justify the multiple. This was underscored by UA's 2018 targets that call for $7.5B in revenue (implying a 25% CAGR) and $800M in EBIT (23% CAGR). It also puts UA within striking distance of $10B in 2019, a milestone we have been speaking to and one we believe it is well positioned to reach. In looking across the retail universe, we see no other company with the strength of brand and underlying growth opportunities that UA has and therefore, we are not daunted by the seemingly expensive multiple. We reiterate our BUY rating."

For an analyst ratings summary and ratings history on Under Armour, Inc. click here. For more ratings news on Under Armour, Inc. click here.

Shares of Under Armour, Inc. closed at $103.36 yesterday.

You May Also Be Interested In

• B.Riley Starts Suncrete Inc (RMIX) at Buy
• Barclays Starts SAB Biotherapeutics (SABS) at Overweight
• AmerX Starts Serve Robotics (SERV) at Buy