Brocker.Org: Even immediately after plunge, Under Armour shares are overvalued, analyst says


Instinet lowered its ranking on Under Armour to reduce from neutral, citing the challenges of the company’s significant valuation supplied its slowing gross sales development.

“UAA appears to have matured earlier its significant-development period, though even now making the most of its significant-development multiple,” analyst Simeon Siegel wrote in a be aware to consumers Monday. “However, even in an extremely optimistic situation … UAA ‘the shares’ are relatively valued at most effective and just about anything quick of perfection could weigh on shares as slowing development rates normalize the lofty multiple.”

Under Armour shares are down much more than 25 % calendar year to day via Friday, with most of the decline occurring immediately after the corporation gave weaker-than-predicted 2017 gross sales direction in its fourth-quarter earnings report on Jan. 31.