NEW YORK (TheStreet) -- Under Armour (UA) shares are up 0.75% to $66.78 in pre-market trading on Friday after analysts at FBR Capital initiated coverage on the stock with an "outperform" rating and $81 price target after the closing bell yesterday.
Analysts at the firm like the direction the company is going and believe that not only will it gain a larger foothold in the active wear market domestically but also that the company is poised to become an international player in the market.
"We think it has multiple levers for revenue growth to potentially exceed expectations for several years, including category expansion (footwear/women's/youth) we estimate could add 20%/year to revenue over the next several years; favorable pricing through innovation, differentiated products, and channel segmentation; international expansion (estimate could add 6%/year to revenue); distribution expansion; and global sports/activewear market expansion (expected to grow +MSD over the next several years)," said analysts.
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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 few notable 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, expanding profit margins and compelling growth in net income. 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."