Shares of Under Armour (UAA) - Get Report jumped Wednesday after the company was the subject of numerous positive analyst notes following the first quarter earnings beat and increased guidance it reported on Tuesday.
Under Armour was up 9.1% to $26.06 at last check in trading Wednesday.
Analysts at Atlantic Equities upgraded the stock to neutral from sell as it is more bullish on the company's turnaround progress. The firm has a $24 price target on Under Armour.
"The last two quarters have shown solid and convincing progress on the operational turnaround of Under Armour. We still see the brand as positioned less favourably than its bigger peers to take advantage of the currently enhanced growth opportunities, and specifically in terms of the current product pipeline/innovation," analyst Daniela Nedialkova said.
"However, we see enough progress on operational metrics in recent quarters to become more positive on the sustainability of the turnaround," Nedialkova added.
Analysts at Jefferies continue to see Under Armour as the best play in athleisure, giving it a buy rating and raising its price target to $35 from $30 per share.
"Company efforts to become a better run company are showing through higher margin flow through and improving brand demand. With our view that performance athletic is gaining ground on fashion athletic for the first time in 5-7 years, UAA a better run company and market cap low, UAA remains our favorite idea in athleisure," analyst Randal Konik said.
UBS analysts meanwhile upgraded the stock to buy from neutral while raising its price target to $36 from $26 per share.
"We believe Under Armour's effort to improve its margins has progressed far ahead of what's priced into the stock. The market thinks strong 4Q20 and 1Q21 results were due to fiscal stimulus and an unusually benign promotional environment, with both likely reversing in FY22. We think UAA's gains will be long-lasting and forecast UAA achieving a 10% FY23 EBIT margin vs. 4.5% in FY19," analyst Jay Sole said.