Could the recent run in Under Armour be too much of a good thing?
The stock closed lower today after Sterne Agee cut its rating on the athletic apparel maker to “neutral” from “buy”, citing the company’s extraordinary year—shares are up almost 40% in 2014.
Sterne Agee maintains, however, that Under Armour’s long-term growth prospects are intact, and established a 2017 price target of $170.
So is this slight pullback a buying opportunity?
(Watch: Nike pops on strong earnings)
“As we know, stocks only go up in this market and Under Armour is a perfect example,” Rich Ross of Auerbach Grayson said. “I think this stock has a significant leg up from current levels…you want to be a buyer here and look to be a profit taker on an explosive move up.”
Ron Dottin of RBC Capital Markets, on the other hand, is taking the bear side saying, “It’s a great company, just a so-so investment.”
Who won the battle over Under Armour? Watch the video and you be the judge.