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Investing.com - Telsey Advisory Group lowered its price target on Under Armour (NYSE:UA) stock (NYSE:UAA) to $5.00 from $7.00 on Monday, while maintaining a Market Perform rating. The stock, currently trading at $5.44, has declined nearly 20% in the past week, with InvestingPro data showing the stock’s RSI indicating oversold territory.
The firm cited Under Armour’s second-quarter fiscal 2026 outlook, which revealed tariffs will create an incremental $100 million cost in fiscal year 2026, cutting operating profit to half of fiscal year 2025 levels. This outlook has prompted 15 analysts to revise their earnings estimates downward, according to InvestingPro data.
Telsey noted the athletic apparel maker faces challenges raising prices while simultaneously trying to elevate its brand by reducing promotions and shifting its portfolio toward premium products.
The research firm also highlighted weaker-than-expected demand in the first quarter of fiscal 2026 across both direct-to-consumer and wholesale channels, with cautious consumer behavior expected to continue throughout the fiscal year.
Despite these headwinds, Telsey acknowledged Under Armour’s progress in rationalizing SKUs, reducing promotions, and cutting costs, while maintaining its strategy to elevate the brand through enhanced bestsellers, differentiated technology, and improved marketing campaigns.
In other recent news, Under Armour has reported several significant developments. The company’s fiscal first-quarter 2026 results showed revenue exceeding projections by $2 million, although adjusted earnings per share fell $0.01 short of expectations. Ahead of the upcoming first-quarter report, UBS has maintained its Buy rating and $8.00 price target, anticipating that Under Armour will surpass earnings per share expectations by one cent. Meanwhile, Evercore ISI lowered its price target to $5.00 from $6.00, citing weak pricing power and revising its earnings per share forecast for the second fiscal quarter to $0.02, which is below the Street consensus. Stifel, on the other hand, reiterated its Buy rating with a $10.00 price target despite noting weak guidance. Additionally, Under Armour has reached a settlement in consolidated derivative lawsuits, agreeing to implement corporate governance measures and receiving $8.9 million, less any plaintiffs’ counsel fees and costs. Furthermore, Under Armour shares rose following the announcement of a new trade deal between the U.S. and Vietnam, which promises zero tariffs on American products entering Vietnamese markets. These developments highlight a mix of challenges and opportunities for Under Armour in the current market environment.
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