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Barclays starts Under Armour at 'Overweight'

NEW YORK (AP) -- Under Armour shares rose in Tuesday afternoon trading as a Barclays analyst started coverage of the clothing company with an "Overweight" rating, saying it should top $2 billion in sales this year.

THE SPARK: Analyst Matthew McClintock also initiated Under Armour with a $60 price target.

THE ANALYSIS: McClintock said in a client note that while most companies tend to slow down when sales hit the $1 billion to $2 billion range, Under Armour was near $2 billion at the end of 2012 and its annual sales growth is still more than 20 percent.

McClintock anticipates that Under Armour can achieve $4 billion to $5 billion in sales in the next five years.

"The growth drivers of the business (men's, women's, footwear, direct-to-consumer and international) remain unchanged from the company's IPO in 2005, yet the operational infrastructure to execute those drivers is better today than it ever has been in the company's public history," McClintock wrote.

Looking past the next five years, the analyst said that Under Armour also has a strong position in the youth market, which could help drive it to levels only reached by Nike Inc. and Adidas.

A representative for Under Armour could not immediately be reached for comment.

SHARE ACTION: Under Armour Inc. rose $1.59, or 3.1 percent, to $52.15. The stock has traded in a range of $44.07 to $60.96 over the last 52 weeks. It is up more than 7 percent year-to-date.