Jefferies raised its rating for Under Armour shares to buy from hold, predicting the company's earnings will beat expectations next year.
Under Armour shares are down 35 percent this year through Thursday, with most of the decline occurring after the company gave weaker-than-expected 2017 sales guidance on its Jan. 31 fourth-quarter earnings report. The shares are also down 55 percent in the previous 12 months.
The "results of our updated proprietary survey … [reveal the] UA brand has strengthened and athletic apparel demand is robust," analyst Randal Konik wrote in a note to clients Friday. "Our webscrapes, store work, and social trend analysis indicate to us an inflection has formed and the buying oppty is now. Our view is compressed valuation and neg. sentiment, ignore compelling growth over the next 2-3 years."