UAA - Under Armour gains after Morgan Stanley points to compelling setup

Morgan Stanley upgraded Under Armour (NYSE:UAA) to an Overweight rating after having the athletic apparel stock slotted at Equal-weight. The frim pointed to attractive valuation following the 25% pullback in share price since the company's last earnings report is November. Analyst Kimberly Greenberger's bull thesis: "We see a compelling '22 set-up vs. peers on 1) lower relative supply chain risk, 2) relative insulation from China consumer backlash, 3) industry channel check momentum, & 4) likely conservative '22 guidance & expectations." UAA is seen being one of just a few stocks in the sector with positive EPS revision potential in 2022. Greenberger and team assigned a price target of $24 to Under Armour (UAA) to represents a midpoint of the firm's $19 base case and $30 bull case. Shares of Under Armour (UAA) jumped 4.82% in premarket tradin to $20.00. The 52-week trading range for Under Armour is $17.52 to $27.28.

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Under Armour gains after Morgan Stanley points to compelling setup