Under Armour Inc (NYSE:UA) shares have rallied in the pre-market after Randal Konik of Jefferies gave the thumbs up to the sporting clothing maker. Although shares have fared poorly in 2017, Konik believes the stock is a ‘Buy’ and has a $27 price target due to his channel research. In particular, Konik comes to the conclusion that the Street’s view of Under Armour Inc (NYSE:UA) is ‘overly negative’ and that there is a ‘significant upside’ given the severely compressed market cap. Konik’s channel checks, along with his research of Twitter mentions of Under Armour, show that the maker’s sponsorship strategy is improving the brand. Presumably with a better brand will come stronger sales down the road.
Jefferies isn’t the only market commentator that gave the thumbs up to Under Armour recently. Financial magazine Barron’s also wrote a glowing column on the stock over the weekend, calling for a potential rally of 30% or more.
What Does The Smart Money Sentiment Say?
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As a whole, the smart money was more bullish on Under Armour per the latest 13F filings. Of the 742 elite funds we track, 35 funds owned $335.96 million of Under Armour Inc (NYSE:UA) and accounted for 3.00% of the float on December 31, versus 28 funds and $528.46 million respectively on September 30. Among the new fund holders was Brian Bares‘ Bares Capital Management, which intiated a new stake of 4.33 million shares, good for 6.49% of the fund’s 13F portfolio at the time.
The Bottom Line
Under Armour Inc (NYSE:UA) shares have rallied in the pre-market after Jefferies termed the stock’s recent weakness as a buying opportunity. For more sports related reading, check out ‘Most Profitable US Sports Teams‘.