The firm said,"We don't believe the market is factoring in the magnitude of UA's LT revenue growth potential."
Under Armour's stock is up 1.70% to $51.97 in pre-market trade.
"We think sales can exceed $15B over the next 10 years, based on strong secular athletic trends across multiple categories and our proprietary survey work that shows UA's growing dominance with the youth generation and women. With shares off ~20% from highs, we think valuation looks attractive here," Jefferies noted.
TheStreet Ratings team rates UNDER ARMOUR INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNDER ARMOUR INC (UA) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."