Why Under Armour Shares Are 'Still Pricey'

Oppenheimer market researchers recently reviewed information gleaned from analyst days, earnings calls and meetings with management to form an opinion on Under Armour, Inc UA.

The analysts found that with North American distribution challenges looming large, an international presence for the shoe and apparel company has become imperative. While Under Armour has made strides in this area, Oppenheimer believes their stores are unprofitable and their footprint in China is tiny compared with peers like Nike, Inc NKE.

Finally, their valuation is determined to be “still pricey” given that shares are trading at 50 times estimates for 2017 earnings.

Under Armour shares fell slightly after hours to $37.66, down from a Wednesday close of $37.76.