Reply to Under Armour Shares Falling

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[quote=Anonymous]"We reiterate our Buy on Under Armour despite today’s long-term guidance revision & pullback. While mgmt lowered their FY18 op.income targets on flat gpms & accelerated investments & we expect EPS estimates to come down,Under Armour fundamentals have not changed, in our view, and we remain confident based on: 1) Most importantly, both FY16 & long-term top-line guidance were both reiterated. As a growth company, we believe UA investors are most focused on revenues. We expectUnder Armour can continue to beat top-line guidance based on Under Armour’s ongoing investments in faster growth segments (footwear & int’l), aggressive demand creation, and history of top-line beats; 2) Also being a growth company, we know that Under Armour needs to continue to invest in order to compete with significantly larger athletic peers. Even with the ramped up SG&A outlook, based on our revised estimates, updated guidance still implies a mid-teens EBIT CAGR over 3yrs and the stock’s ~13% pullback today creates a buying opportunity, in our view."

Still a recommended BUY.

http://blogs.barrons.com/stockstowatchtoday/2016/10/25/why-under-armour-is-getting-creamed/[/quote]

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