Goldman Sachs is sticking with its buy rating on Under Armour, even after shares plunged following disappointing quarterly update and the revelation of a federal investigation into the apparel maker.
"We come away from results with our long-term thesis intact," Goldman Sachs analyst Alexandra Walvis wrote in a note to investors. The firm removed the stock from its list of favorite stocks, but maintained a buy rating.
Under Armour delivered third-quarter results that beat Wall Street's expectations on the top and bottom lines. But Under Armour cut its 2019 revenue forecast, while also confirming that the Securities and Exchange Commission and Justice Department are looking into whether the company used bad accounting practices to make its finances look healthier.