Canaccord analyst Camilo Lyon weighs in on sportswear giant Under Armour Inc (NYSE:UA) ahead of Tuesday’s July 26 results for UA’s second quarter, reiterating a Buy rating with a price target of $65.00.

For the past two earnings quarters, Under Armour has certainly faced some challenges, with consequent weak revenue reports. But Lyon believes this upcoming second quarter could mean the brink of change for the company, who had to reduce risks at the end of May by pre-announcing earning; in the wake of The Sports Authority declaring bankruptcy.

The analyst noted, “We expect the company to deliver solid 26%+ sales growth while keeping margins in line and most importantly, significantly working down its inventory position.” Lyon forecasts sales growing by 26%, with guidance in the high 20%.

Moreover, the analyst considers his 50% estimated increase in footwear sales modest when compared to the building momentum of UA Stephen Curry basketball shoes coupled with the golf footwear launch that includes driving brands like Tempo Tour, Drive One, and Tempo Tour Hybrid. With CoolSwitch and Microthread, new innovations changing the game for UA, Lyon projects 20% of a total sales growth for Under Armour apparel.

Lyon added, “We believe inventory will be the positive catalyst for the stock;” particularly now that old inventory has been mostly cleared out during this second quarter without majorly shaking up profit margins; and wholesale investments yielding better margins. Right now, from the perspective of this analyst, Under Armour is favorably entering not just the next quarter, but set to enter 2017 with a gross margins rebound.

As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, Camilo Lyon is ranked #1,429 out of 4,073 analysts, with a 54% success rate and a 1.2% in average returns.

TipRanks reveals UA to be a Moderate Buy. Out of 22 analysts polled in the past 3 months, 13 rate a Buy, 8 maintain a Hold, and 1 Sell. The average price target for the stock is $48.00, noting a 12% upside from where shares last closed.