BTIG warns on Under Armour (UA, UAA) over concerns on decelerating e-commerce growth and a benefit from mask sales that won't last.
Analyst Camilo Lyon: "We believe most of the e-commerce growth came from masks. By our math, we estimate it accounted for ~18pts of total e-commerce growth in both Q3 and Q4, and non-mask e-comm grew ~7% in Q4. This gives us pause when thinking about the company's ability to drive sustained full price selling, as it is expecting to do this year and beyond. With easy 1H compares, the true test of UAA's brand durability will come when they lap strong growth in masks in the second half of the year."
The firm keeps a Sell rating on Under Armour and price target of $10.
Under Armour is not a battleground stock in the sense that short interest is high, but does have a mix of positive, neutral and negative ratings on Wall Street and Seeking Alpha.
