Under Armour: Susquehanna recommends 'sell the rally'

(CercleFinance.com) - Susquehanna maintains its "negative" view on Under Armour, with a target price of 11 dollars, saying that restructuring efforts and updated guidance do not mean improving fundamentals.


On the contrary, the US broker says underlying fundamentals have not improved, with the sportswear maker's topline growth remaining well below the 22% average growth over the past 5 years, while EBIT margins remain depressed.

"At the same time, there is no clarity as to how the Under Armour brand will be regarded by consumers in coming years," Susquehanna adds.

Saying that the share is likely to continue falling, the analyst recommends that investors "sell the rally."

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