This Firm Is Bullish On Under Armour After Another Successful Product Launch

In a report issued Tuesday, FBR & Co. highlighted Under Armour Inc UA after a successful launch of a new basketball shoeline. FBR rates Under Armour as Outperform and raised its price target from $83 to $86.

Analysts Susan Anderson and Andrew Schmidt wrote, "we found a stronger-than-anticipated brand preference for UA footwear, considering its still-early foray into the footwear market...Based on UA's brand potential, we expect accelerated growth, as its footwear share should catch up with its strong brand preference."

Normalized for market share, Under Armour is one of the leaders for brand preference in both running and basketball. With partnerships with basketball superstars such as Stephen Curry, this lead should only increase and Under Armour's market share should continue to get stronger.

Under Armour has a history of commanding elevated prices due to smart marketing and technical innovations -- a trend that should continue into the future and boost profit margins. Furthermore, Under Armour has multiple revenue drivers including category expansion, e-commerce, wholesale, and partner store growth which should help the company exceed earnings and revenue targets going forward.

Shares of Under Armour closed Monday at $77.29.