Under Armour Inc. was upgraded to outperform from market perform at Wells Fargo on Monday as concerns about the impact of The Sports Authority bankruptcy fades. The athletic apparel and accessories company’s valuation range was increased to $44-$46 from $38-$42. The Sports Authority’s share of Under Armour sales had fallen to between 3% and 4% more recently from 15%, analysts wrote. This revenue loss will have an impact until things turn favorable in early 2017 after the “Sports Authority drag rolls off,” supply chain is sold in the off-price channel, and the Kohl’s Corp. roll out begins. Wells Fargo also believes there’s much room for growth versus the competition (like Nike Inc. ), in footwear and internationally. Under Armour shares are up 1.5% in Monday trading, but down 27.5% over the past year. The S&P 500 Index is up 7.6% for the last 12 months.
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