BALTIMORE, United States — Under Armour rose as much as 3.8 percent, recovering a portion of Tuesday's 4.7 percent drop after Citigroup raised its rating to a buy from neutral in a transfer of coverage to analyst Kate McShane.

McShane established a $29 price target, up from Citigroup’s old target of $23, and believes UAA has a renewed focus on driving profitability and ROIC. The analyst added that the apparel maker has taken action to adapt to the changing athletic landscape.

McShane sees the potential for Under Armour to recapture 600 basis points or more in EBIT margin over the next several years, and sees upside to management’s 2019 gross margin guidance.

McShane also assumed coverage of Foot Locker at neutral (down from buy, price target to $68 from $72) and Dick’s Sporting Goods at neutral, matching its previous rating (price target to $40 from $38). In addition, Citi raised its target on buy-rated Nike to $100 from $96.

By Gregory Calderone; editors: Catherine Larkin, Steven Fromm.