Under Armour's new sneaker technology is getting more attention than the Curry 4 (UAA)

pulse

April 23, 2018 8:56 PM

Under Armour is losing to its competition. But one product could help to be a savior.

HOVR is easily outpacing the Curry 4 in Google Trends data.
Under Armour has been losing market share, and risks falling behind New Balance.

Under Armour's new sneaker technology could be a bigger hit than the Curry 4, according to Deutsche Bank analyst Paul Trussell. The HOVR technology is part of Trussell's optimism on Under Armour, which he upgraded to a "hold" from "sell" in a note sent out to clients on Monday.

The Curry 4 got a lot of attention ahead of its October release. At the time, Jefferies analyst

But Trussell thinks Under Armour's new HOVR technology could be even bigger. HOVR is a physical platform at the bottom of the sneaker, providing additional support and comfort.

"According to Google Trends data, the HOVR launch has garnered higher interest than compared to the release of the Curry 4 in the U.S. and worldwide," Trussell wrote. "We have seen the $140 HOVR Phantom men's sold out in all colorways, while the women's is sold out in most sizes and colorways."

However, Under Armour's ability to grow its HOVR platform remains to be seen. Like any product, "time will tell if the product can scale," Trussell said.

That's going to be especially important for Under Armour, whose stock plunged as much as 80% amid increased competition and swelling inventory since topping out in September 2015.

Trussell's warning comes days after Wedbush cautioned Under Armour risks falling into fifth place behind New Balance in the sneaker wars. ".

Deutsche Bank has a price target of $16 a share for Under Armour, just below where the stock is trading on Monday.

Under Armour shares are up more than 11% this year.

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