Stifel reiterates Buy rating on Under Armour stock despite weak guidance

Investing.com - Stifel maintained its Buy rating and $10.00 price target on Under Armour (NYSE:UA), Inc. (NYSE:UAA) following the company’s fiscal first-quarter 2026 results. According to InvestingPro analysis, the stock appears undervalued at its current price of $5.47, with a beta of 1.61 indicating higher market volatility.

Under Armour reported quarterly results that were largely in line with Stifel’s estimates, with revenue exceeding projections by $2 million, while adjusted earnings per share came in $0.01 below expectations.

The athletic apparel maker issued weaker guidance for the fiscal second quarter of 2026, projecting revenue $50 million below Stifel’s estimates and adjusted earnings per share $0.25 lower than anticipated at the midpoint of the forecast range.

Regionally, Under Armour is experiencing stronger growth in Europe, the Middle East, and Africa (EMEA), while North America, which represents 59% of the company’s revenue, continues to underperform.

Stifel indicated it believes Under Armour can eventually stabilize both revenue and profitability, citing the company’s brand value and global reach as supporting factors for an eventual turnaround, though the firm acknowledged that visibility to revenue stabilization remains challenging.

In other recent news, Under Armour has been in the spotlight with several notable developments. UBS has maintained its Buy rating for the company, setting a price target of $8, as the firm anticipates Under Armour will exceed earnings per share expectations by one cent in the upcoming first quarter fiscal 2026 earnings report. Meanwhile, Stifel has adjusted its price target for Under Armour to $10 from $11, maintaining a Buy rating, citing the company’s rebranding efforts and recent financial performance. Under Armour’s fourth fiscal quarter met earnings expectations, with a noted increase in revenue and gross margin. The company has also reached a settlement in derivative lawsuits, agreeing to implement corporate governance measures and make a payment of $8.9 million funded by insurance proceeds. Additionally, Under Armour shares saw a rise following the announcement of a trade agreement between the U.S. and Vietnam, which promises zero tariffs on American products entering Vietnamese markets. These developments reflect Under Armour’s ongoing efforts to navigate market challenges and capitalize on its brand strength.

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