Under Armour Inc. shares got a rating upgrade from after analysts at Raymond James.
Raymond James analyst Matthew McClintock raised his rating on the sports apparel and footwear retailer to "strong buy" from "outperform", citing the company’s risk/return profile. McClintock maintained his price target on the stock at $30 a share.
McClintock said that Under Armour was ahead of schedule on new product sales. He also mentioned that the headline risks related to a recent Department of Justice investigation might be less than initially anticipated.
Under Armour’s revenue recognition accounting is being investigated by the U.S. Department of Justice and the Securities and Exchange Commission, as was reported by the Wall Street Journal. Under Armour said its "practices and disclosures were appropriate" and that it has been co-operating with the agencies on the investigations.
For the full-year 2019, Under Armour is expecting earnings at the higher end of its prior forecast range of between 33 cents and 34 cents per share. The company now projects revenues to experience + 2% growth in the year partly due to lower-than-expected excess inventory; the forecast is lower than its prior guidance of +3% to +4% growth.