Under Armour news about an upgrade for the company has UAA stock up on Friday.
The upgrade for Under Armour (NYSE:UAA) comes from analysts at JPMorgan. These analysts are taking the stock from its previous rating of “Neutral” and increasing it to a new rating of “Overweight.”
The good Under Armour news doesn’t just stop at a stock upgrade. The JPMorgan analysts are also increasing the price target for UAA stock. This new price target is $29 per share. That’s a roughly 26% increase over the old price target of $23. It also is about 33% above the stock’s closing price of $21.88 on Thursday.
So what is it that has JPMorgan analysts’ taking such a bullish stance on UAA stock? The analysts decided to give the stock the new rating and price target after meeting with Under Armour CEO Kevin Plank.
According to TheStreet.com, the analysts came away from that meeting with more confidence in the company. The firm also points to the company’s revenue growth acceleration and earnings for fiscal 2020 as one of the reasons for the upgrade. This is all positive Under Armour news for investors.
Under Armour has been working to turn its business around and reduce debt. It looks like those efforts are paying off with this new upgrade and price target from JPMorgan. This is a major change over where the stock was sitting three years ago and maybe signs that it’s back to being a solid investment.
UAA stock was up 7% as of noon Friday.
As of this writing, William White did not hold a position in any of the aforementioned securities.