Baird reduced its price target on Under Armour Inc
Analysts Jonathan Komp and Benjamin Bray defended the additional
The brokerage expressed its disappointment in the resetting profit targets for the year 2018. However, the firm said in a note, "Importantly, we believe UA is making the right decisions to prioritize long-run scale/share opportunities, and following the one-time step-up in spending, normalized investment after 2018 should support improved FCF, ROIC, and margin (no structural barriers to mid-teens)."
Pointing out that Under Armour delivered 20 percent top line growth in the last 6 1/2 years, Baird thinks there is no change in the brand fundamentals health.
The brokerage thinks the concerns are purely in the short-term nature and that the long-term prospects are intact. Therefore, the firm didn't want to penalize a company that has a strong brand momentum.
At last check, the stock dropped 2.68 percent to $32.01.
|Oct 2016||Atlantic Equities||Downgrades||Overweight||Neutral|
|Oct 2016||Cowen & Co.||Downgrades||Outperform||Market Perform|
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