Shares of Under Armour (NYSE:UAA) soared more than 10% yesterday after Stifel analyst Jim Duffy upgraded the stock’s rating to Buy from Hold. Duffy also raised the price target to $12 from $9, implying an upside potential of 14.4% at current levels.
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The company is seeing greater margin certainty, according to the top-rated analyst. Under Armour may be able to launch new products in 2023, he continued, thanks to its inventory management initiatives. Duffy also thinks that by the second half of 2023, the systemic risk brought on by “larger competitors” should decline.
Further, the analyst is optimistic about the company’s strong balance sheet and earnings growth.
Under Armour provides sports apparel, footwear, and accessories, in addition to running digital fitness apps with millions of users. Last month, Under Armour reported upbeat Q2 results as both earnings and revenue exceeded analysts’ expectations.
Apart from the analysts, hedge funds also have a bullish stance on Under Armour. Our data shows that over the last three months, hedge funds increased their holdings of UAA stock by 1 million shares.
Is UAA a Buy Stock?
Under Armour stock has received four Buy and seven Hold recommendations for a Moderate Buy consensus rating on TipRanks. Meanwhile, the average price target of $9.30 implies 11.3% downside potential.
