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.