Citi analyst Kate McShane maintains a Buy rating on Under Armour (UA) following yesterday's earnings miss and stock selloff. The shares closed yesterday down 26%, or $7.45, to $21.49.
The analyst continues to believe the brand has momentum saying North America sales rose in the quarter 6%, potentially outperforming Nike (NKE) in the region. She also believes Under Armour's global expansion strategy is intact.
With that said, McShane dropped her price target for the shares to $25 from $38, and admits management has work to do following last year's Sports Authority bankruptcy disruption, discounting on premium athletic product, and merchandising missteps.
In the Apparel/Footwear space, McShane's top pick remains Foot Locker (FL), followed by Nike. Under Armour moved down to seventh on her list.
Comments
Log in or sign up to join the conversation.