Under Armour upgraded to Buy from Hold at Stifel

Stifel analyst Jim Duffy upgraded Under Armour (UAA) to Buy from Hold with a price target of $12, up from $9. "Relative inventory management discipline" leaves Under Armour with better margin certainty and in a better position to bring newness to market in 2023, Duffy tells investors in a research note. The analyst expects "systematic risk from an inventory glut of larger competitors" will clear by the second half of next year. And with tightening lead-times, he sees tailwinds to Under Armour’s cash flow in 2023 and believes its net cash balances could be greater than 25% of the current market capitalization. With a strong balance sheet, improving earnings and new leadership, investor focus should shift to growth and the company’s structural margin opportunities, contends Duffy.