Under Armor, Inc. (UAShares rose more than 2% during Thursday’s session after Piper Sandler upgraded the stock to overweight at $ 28 Price target – a premium of 49% on the closing price on Wednesday.
The central theses
- Under Armor stocks extended their rally Thursday after Piper Sandler upgraded and doubled the stock Price target to $ 28 per share.
- Piper Sandler believes the estimates are conservative and that Under Armor stock could outperform, but BTIG cautioned that the mask advantage is limited.
- The stock moved deeper in overbought Territory during Thursday’s session, which might indicate Consolidation about the upcoming meetings.
Piper Sandler analyst Erinn Murphy believes Under Armor stock could extend its rally by an additional 25%, and says management has left cushion on both sales and sales Gross margin Estimates for the second half of the year. Murphy believes the stock remains one of the “most unpopular” stocks in their news coverage despite these potential upside catalysts.
On the other hand, BTIG analyst Camilo Lyon warned this E-commerce Growth has slowed and the benefits of mask sales will not last. Lyon believes most of the ecommerce growth is due to masks – around 18 Basis points of total e-commerce growth in the third and fourth quarters.
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From a technical standpoint, Under Armor stock has expanded gains from earlier in the week during Thursday’s session. The Relative Strength Index (RSI) moved lower into overbought territory at 77.25, but the moving average convergence divergence (MACD) accelerated its upward trend. These indicators suggest that the stock may experience some consolidation in the short term, but the intermediate trend remains bullish.
Traders should look for consolidation between previous highs and trend lines resistance at around $ 19.60 and trend line support at around $ 18.45 in the coming sessions. If the stock deviates from these levels, traders could see a move towards the 50-day moving average of $ 15.67. If the stock extends its breakout, traders could see a move towards new highs.
Tip
Consolidation In technical analysis, this refers to an asset that oscillates between a well-defined pattern of trading levels. Consolidation is generally interpreted as market indecision that ends when the price of the asset moves above or below the trading pattern.
The bottom line
Under Armor stocks rose significantly during Thursday’s session after Piper Sandler upgraded the stock to overweight and doubled its price target to $ 28 per share. While the stock could consolidate in the short term, the medium term trend remains optimistic.
The author has no position in the stocks mentioned, except through passively managed index funds.
