Downgrade on Under Armour sounds more like long-term Buy call


Shares of Under Armour (UA) are lower in early action after Sterne Agee comes in with a downgrade on the high-flier.

The investment firm pulls back to Neutral from Buy on a valuation call.

The long-term outlook on the stock looks very favorable to Sterne with the company showing strength in growing categories. Sterne sets a 2017 PT of $170 on Under Armour showing its faith that investors that buy on the dips will be amply rewarded.

UA -1.3% premarket to $120.40.

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Comments (1)
  • Merrill McHenry, CFA
    , contributor
    Comments (38) | Send Message
     
    "...sounds like a LT buy call" is one of the stupidist finance comments I've ever heard. THAT IS THE TARGET FOR 2017. IS THIS 2017? NO. I REPEAT NO!!
    THE ANALYST PRESUMPTION WITH THAT TARGET IS BY THAT TIME - 3 YEARS HENCE - THE COMPANY AND IT'S BOOK VALUE BASE WILL THEN, I REPEAT "THEN"(!!) BE ABLE TO SUPPORT THAT VALUATION.
    If I give you a 2020 target is the stock supposedly ALREADY WORTH THAT?? NO, THAT'S 6 YRS IF ALL GOES RIGHT. IN REALITY SOME WILL, AND SOME WON'T.
    What a rookie comment.
    20 Mar 2014, 06:32 PM Reply Like
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