Under Armour (UA: sentiment, chart, options) shares are up 6% after Wedbush Morgan initiated coverage of the stock with a "buy" rating. The broker issued a $30 price target on UA, representing a premium of 20% to the stock's closing price Monday. In a note to clients, Wedbush Morgan cited Under Armour's "exceptional marketing" and branding, as well as strong product and revenue growth that should offset stalling margins during the near term.

Today's rally was sorely needed by UA, which yesterday fell to a new annual low of $24.25. Year-to-date, the shares have shed 43% under pressure from their 10-week and 20-week moving averages.

Following today's bullish brokerage note, some shorts are probably getting squeezed out of their bearish stance. Short interest represents nearly half of UA's available float, and the current bulk of shorted shares would take more than 13 trading days to repurchase at the stock's average daily volume.

Meanwhile, on the brokerage front, there's plenty of room for sentiment to shift in either direction. Zacks reports that UA has racked up 7 "holds," compared to just 1 "strong buy," which leaves ample opportunity for upgrades. On the other hand, Thomson Financial reports that the average 12-month price target on the shares is $37, a lofty 48% jump from Monday's closing price.