Business & Investment

According to analysts, Under Armor used a pandemic to improve its business in the long run.

Under Armor Inc. has taken advantage of the turbulent period of the COVID-19 pandemic to improve its business in the long run, analysts at BMO Capital Markets said.

BMO has raised its price target by $ 2 to $ 25.

BMO analysts, led by Simeon Siegel, say gross profits have improved and more growth is possible. Athletic companies also discovered operational efficiency after a period of “the idea of ​​growing at all costs.”And under armor
UAA,
+ 0.72%

We are sucking up cash that could lead to share repurchases and increased earnings per share.

“The recent sale minimizes Under Armor’s aggressive use of’COVID-Cover’to rebuild its business for the future, with brand promotion and pricing power and advancement. Expenditure, “BMO writes.

Under Armor’s share price has fallen 7.7% in the last three months, but has risen 4.7% in the past year.

S & P500 Index
SPX,
-1.31%

It has increased by 2.4% in the last three months.

“With recent industry holiday updates and increasingly difficult comparisons that focus on the sector, we believe Under Armor is one of the healthy brands abandoned in bath water.”

Under Armor shares were downgraded at Stiffel in December, and analysts expressed concern about possible increases in discounts.

look: Under Armor has been downgraded due to the athletic category facing exciting cash and inflation that will disappear towards 2022

Under Armor launched in neutral at Seaport Research Partners on Tuesday, linking analysts with brand health and sales growth, especially in North America.

“”[W]North American sales haven’t returned to CY16’s peak yet, but Under Armor has achieved significant profit improvements in the last few quarters, “said analysts, and the brand sells more products at regular prices. I said that I am doing it.

“I’m encouraged by Under Armor’s progress, but I’m still not sure if that will really be reflected in the true brand heat. Moreover, given the supply chain challenges, Under Armor has a late start to FY22. We expect it to be slower than most other vendors we cover. This is not good optics. “

also: Bootburn says preliminary income beats the streets

When: Crocs expects full-year revenue to reach record

Armour’s analysis was part of a larger report that Seaport Research launched the shoes and apparel category.

A brand with a purchase rating is Nike Inc.
NKE,
-0.46%
,
Ugg’s parent Deckers Outdoor Corp.
deck,
+ 0.73%
,
And Foot Locker Inc.
FL,
+ 0.09%

In addition to Under Armor, Boot Barn Holdings Inc.
boot,
-1.05%
,
Clocks Co., Ltd.
CROX,
-1.93%
,
Columbia Sportswear Co., Ltd.
Corum,
+ 0.64%

And Vans’ parent VF Corporation.
VFC,
-1.63%

It is rated as neutral.

According to analysts, Under Armor used a pandemic to improve its business in the long run.

http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7880-C92D0140D6F5%7D&siteid=rss&rss=1 According to analysts, Under Armor used a pandemic to improve its business in the long run.

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