Wall Street's Take On Under Armour Earnings

Shares of Under Armour Inc UA were down more than 4 percent on Friday following an earnings beat by the company. Under Armour reported Q4 EPS of $0.45 vs. consensus expectations of $0.44 and revenue of $1.204 billion versus consensus estimates of $1.176 billion.

Why is the stock falling and where will Under Armour go from here? Here’s what five Wall Street firms have to say about Under Armour’s report.

Buckingham Sees Little Downside

Analyst Scott Krasik sees little downside to the stock as long as the company maintains its 25 percent-plus sales growth. However, he calls Q4 and 2016 guidance “uninspired” and would not recommend buying the stock at its current “lofty valuation.”

Buckingham has a Neutral rating on Under Armour and a $92 target for the stock.

Deutsche Bank Still Sees Drivers

Analyst Dave Weiner blames weak gross margins and Q4 guidance for the negative market reaction, but sees “many drivers including footwear, women’s intl., & DTC.” Weiner believes that Under Armour’s potential could eventually reach that of competitor Nike Inc NKE.

Deutsche Bank maintains a Buy rating and $110 target for the stock.

Related Link: Brean Cuts Under Armour Targets: Here's Why

Macquarie Likes Footwear

Analyst Laurent Vasilescu highlights the inventory build-up in footwear as one of the negatives for the quarter, but points out that the company’s projected 2015 footwear sales of about $600 million imply overly conservative pricing estimates.

Macquarie has a Neutral rating on the stock and a $103 price target.

Barclays

Analyst Matthew McClintock is “impressed by the consistent, broad-based, and high levels of growth at UA.”

Barclays has an Overweight rating on the stock and a $110 price target.

Brean Maintains Positive View

Analyst Eric Tracy sees multiple compression as the single biggest threat to shareholders, but maintains a positive view of the long-term fundamentals of the company.

Brean has a Buy rating on the stock, but lowered its price target from $117 to $110.

Disclosure: the author holds no position in the stocks mentioned.