UAA - Under Armour earnings set stage for sustainable growth story - William Blair

Under Armour (UAA +16.5%) continues to rise as William Blair upgrades the stock to Outperform from Market perform, saying that the firm now expects mid-single digit revenue growth in 2022 despite probable supply chain challenges. "The repositioning of the brand has set the stage for meaningful and consistent revenue growth in tandem with ongoing margin expansion," write analysts Sharon Zackfia and Tania Anderson. "That should set the stage for a further acceleration in revenue growth in 2023, which could translate into multiple expansion as investors revisit Under Armour as a sustainable growth story." Risks to the stock include competition, increased reliance on channels with lower margins, and high turnover rates in senior management. Under Armour rose over 16% Tuesday after earnings came in better than expected. 11 of 25 analysts covering the stock are bullish, while Seeking Alpha's Quant Rating ranks the stock #1 in the apparel industry.

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Under Armour earnings set stage for sustainable growth story - William Blair