Under Armour Defends Its Turf

This article was placed on behalf of the U.S. based equity research effort of institutional broker and investment bank Canaccord Genuity. It was part of a series of articles developed under an agreement with forbes.com to work with a variety of contributors and assist them in delivering actionable investment ideas each week. The site, forbes.com is one of the top 500 sites in the world with nearly 10 million subscribers and approximately 100 million page views a month.

Canaccord Genuity analyst Camilo Lyon reiterated his BUY rating and raised his price target on Under Armour to $85 from $75 amid the company’s efforts to bolster its presence in retail channels through so-called shop in shops displays. Mr. Lyon said:

“Given Nike’s increasing focus on expanding its presence at retail through the build-out of shop-in-shops at Dick’s Sporting Goods, Foot Locker and Finish Line, Under Armour is rightly defending its turf by also rapidly rolling out its own shop-in-shop concepts at Dick’s and The Sports Authority.”

He added, “With 50 shop-in-shops in place now, we expect only a modest sales bump this year; however, we believe the more distinct sales lift will happen in 2012 and beyond as the company accelerates shop-in-shop openings.”

More Posts

Scroll to Top