NEW YORK (TheStreet) -- Under Armour shares are up 1.27% to $86.22 in early market trading on Monday after the sports apparel company had its "buy" rating reiterated by analysts at Bank of America while its price target was increased to $95 from $88.The upgraded outlook comes ahead of the release of the Baltimore, MD-based company's first quarter financial results before the opening bell tomorrow. Analysts are expecting the company to report earnings of 5 cents per share on revenue of $802 million."We believe UA is poised to become a leading global athletic brand and believe, long term, UA could triple in revenues through: growth in core apparel through continued market share gains, supported by new programs and category extensions, continued expansion in direct to consumer, expansion in athletic footwear longer term, and long term international acceleration," said analysts Robert Ohmes and Rafe Jadrosich. TheStreet Ratings team rates UNDER ARMOUR INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation: "We rate UNDER ARMOUR INC (UA) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 11.3%. Since the same quarter one year prior, revenues rose by 31.1%. Growth in the company's revenue appears to have helped boost the earnings per share. Although UA's debt-to-equity ratio of 0.21 is very low, it is currently higher than that of the industry average. To add to this, UA has a quick ratio of 2.07, which demonstrates the ability of the company to cover short-term liquidity needs. UNDER ARMOUR INC has improved earnings per share by 35.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, UNDER ARMOUR INC increased its bottom line by earning $0.95 versus $0.75 in the prior year. This year, the market expects an improvement in earnings ($1.09 versus $0.95). The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 36.7% when compared to the same quarter one year prior, rising from $64.17 million to $87.71 million. Powered by its strong earnings growth of 35.59% and other important driving factors, this stock has surged by 59.46% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels. You can view the full analysis from the report here: UA Ratings Report Must Read: Warren Buffett's Top 25 Stocks for 2015
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