Here's Why Under Armour Inc Stock Surged Almost 12% Today

Shares of Under Armour Inc (NYSE: UA)(NYSE: UAA) were up as much as 11.9% on Friday, Dec. 15. As of 1:35 p.m. EST, they've cooled off a bit, but are still up 8.7% (UA) and 7.7% (UAA). This big jump was primarily caused by a note released today by Stifel analyst Jim Duffy, who upgraded his rating on Under Armour from "hold" to "buy." Duffy also increased his price target to $17, $5 higher than the prior $12 target.

Duffy's vote of confidence was multi-pronged. To start, part of the upgrade was related to his expectations that the North American athletic apparel and footwear market will be more stable in 2018 than it has been for the past year or so. Since late 2016, weaker demand and fierce competition, combined with a spate of sporting goods retailers going out of business, has led to far more price competition among Under Armour and its two much-bigger competitors Nike Inc and adidas AG (ADR), which has played a major role in Under Armour's struggles over that period. The good news is that there is some evidence that demand is improving, and price competition is starting to abate as well. That should be a positive for Under Armour's (and its competitors') bottom line.

Image source: Under Armour.

Source: Fool.com