UBS analyst Jay Sole tells investors in a research note that the firm’s 10th annual global athletic wear survey indicates that Under Armour (UAA) is undervalued and that improving sales growth will cause the stock’s valuation to increase. The firm believes Under Armour will achieve a 20% five-year EPS compound annual growth rate, positively surprising the market, and that the company will deliver innovation and better leverage amid its turnaround. The firm’s survey suggests that Under Armour’s brand awareness, purchase intentions, and attributes are strong and that the market’s narrative about Under Armour “is probably wrong.”
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