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NEW YORK (TheStreet) -- Shares of Under Armour (UA) were down in pre-market trading on Wednesday after its stock rating was lowered to "hold" from "buy" in a note released at Argus earlier today.

The sportswear retailer will likely need to invest heavily to expand its business going forward, the firm said in a note cited by TheFly. 

These investments could weigh on the Baltimore-based company's returns during the next year, Argus added. 

(Under Armour is held in the Growth Seeker portfolio. See all of the holdings with a free trial)

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Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.

Under Armour's strengths such as its robust revenue growth, good cash flow from operations and expanding profit margins are countered by weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and premium valuation.

You can view the full analysis from the report here: UA

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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