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Investing.com - CFRA has upgraded Under Armour (NYSE:UA), Inc. (NYSE:UAA) stock rating from Sell to Hold while maintaining its $5.00 price target. According to InvestingPro data, the stock is trading near its 52-week low of $4.78, with technical indicators suggesting oversold conditions.
The research firm cited fair valuation and significantly lowered expectations as key factors in the upgrade decision, noting that most downside risk appears priced into the stock at current levels.
Under Armour reported first-quarter fiscal 2026 normalized earnings per share of $0.02, compared to $0.00 in the year-ago period, meeting consensus estimates. Revenue came in at $1.13 billion, slightly above analyst expectations of $1.128 billion.
Regional performance showed weakness across markets, with North America sales declining 5% to $670 million and International revenue falling 1% to $467 million. By channel, wholesale revenue dropped 5% to $649 million, while direct-to-consumer sales decreased 3% to $463 million.
CFRA maintained its $5.00 price target, representing a multiple of 11.1 times its fiscal 2027 earnings estimate of $0.45 per share, below Under Armour’s three-year average forward P/E multiple of 20.5x, reflecting the firm’s view that the company deserves a below-peer multiple due to volatile earnings.
In other recent news, Under Armour has been the focus of several analyst reports, with multiple firms adjusting their price targets for the company. Truist Securities lowered its price target to $5.00, citing concerns over tariffs and maintaining a Hold rating. Similarly, Telsey Advisory Group adjusted its target to $5.00, highlighting an additional $100 million cost due to tariffs, which is expected to cut operating profit to half of fiscal year 2025 levels. Evercore ISI also reduced its price target to $5.00, noting weak pricing power and significantly cutting its earnings per share forecast for the second fiscal quarter.
Meanwhile, UBS has set a price target of $7.50, pointing to the negative impact of tariffs on sales and margins, leading to a substantial reduction in earnings per share estimates for fiscal year 2026. Stifel, on the other hand, lowered its target to $9.00 while maintaining a Buy rating, following fiscal first-quarter results that were mostly in line with expectations but accompanied by a weaker outlook for the second quarter. These recent developments reflect a cautious sentiment among analysts regarding Under Armour’s financial outlook amid tariff concerns and weaker guidance.
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