Shares of Under Armour Inc (NYSE:UAA) recovered slightly in early trading on Wednesday, after tanking on Monday following the company’s fiscal fourth-quarter results.
Here are the key analyst insights:
- Stifel analyst Peter McGoldrick downgraded the rating from Buy to Hold and lowered the price target from $9 to $6.
- Truist Securities analyst Joseph Civello reaffirmed a Hold rating, while reducing the price target from $8 to $5.
- Guggenheim Securities analyst Simeon Siegel maintained a Buy rating on the stock.
Check out other analyst stock ratings.
Stifel: Under Armour’s turnaround, with a return to “more appropriate growth and profitability,” is delayed, McGoldrick said in the downgrade note. He added that the downgrade in rating reflects:
- The company’s higher than previously anticipated SG&A expense
- Inflection to a normalized net debt position
- Continued challenges to topline growth
While Under Armour’s increase in investments supports its brand premiumization strategy, it raises the point at which revenues translate to “growth-driven value creation,” the analyst stated. Apart …