UBS Reaffirms Buy on Under Armour (UA), Sees Turnaround Potential

Under Armour, Inc. (NYSE:UA) is 1 of the 10 Best US Penny Stocks to Buy. On January 1, UBS reaffirmed its Buy standing connected Under Armour, Inc. (NYSE:UA) with a terms people of $8. UBS sees the institution arsenic a turnaround accidental and believes that aboriginal show could transcend marketplace expectations.

The concern steadfast projects that Under Armour, Inc. (NYSE:UA) could execute a 25% compound yearly maturation complaint successful net per stock implicit the adjacent 5 years. UBS expects the institution to thrust this maturation done sizeable innovation and amended leverage of the marque name. The steadfast believes that these should pb to betterment successful Under Armour, Inc.’s (NYSE:UA) North American gross maturation rate, which could assistance assistance the company’s valuation implicit time.

UBS besides highlighted findings from its Evidence Lab’s 11th yearly planetary diversion deterioration survey, which shows that Under Armour, Inc. (NYSE:UA) is 1 of the astir recognized and well-liked diversion deterioration brands successful the world. It belongs successful the aforesaid class arsenic brands specified arsenic Lululemon, Jordan, Adidas, Puma, On, Hoka, Skechers, and New Balance.

The concern steadfast pointed retired that the mean marketplace worth of publically traded standalone brands successful this radical is astir $19 billion, compared with Under Armour, Inc.’s (NYSE:UA) marketplace capitalization of conscionable $2.1 billion. This shows that the valuation spread betwixt the institution and its competitors is excessively large.

Under Armour, Inc. (NYSE:UA) is an American sportswear institution that designs, markets, and distributes branded diversion show apparel, footwear, and accessories.

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Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.