Truist cuts Under Armour stock price target to $7 from $9

Published 14/05/2025, 14:30
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On Wednesday, Truist Securities adjusted its outlook on Under Armour (NYSE:UA), Inc. (NYSE:UAA) shares, reducing the price target to $7 from the previous $9 while maintaining a Hold rating. Currently trading at $6.27, the stock sits between analyst targets ranging from $4.00 to $14.50. The adjustment comes after Under Armour provided its first-quarter 2026 guidance, which fell short of analysts’ revenue expectations but exceeded slightly on the earnings per share (EPS) front.

Under Armour’s stock saw a modest increase of 1% on Wednesday, which aligned with the general movement of the S&P 500, also up by approximately 1%. This performance followed the company’s announcement of its fourth-quarter results, which met analysts’ projections. Despite the in-line fourth-quarter results, the future guidance provided by Under Armour did not meet the prior expectations set by Wall Street analysts, particularly concerning top-line revenue.

Truist Securities’ analyst expressed a cautious stance regarding Under Armour’s potential to successfully navigate its turnaround amid the current economic climate. InvestingPro analysis shows the company maintains a FAIR financial health score of 2.24, with a healthy current ratio of 2.1 indicating strong short-term liquidity. The firm’s position reflects concerns about the limited visibility surrounding the impact of tariffs and the effectiveness of the company’s turnaround strategies and heavy investments in branding. The analyst’s comments suggest a wait-and-see approach, looking for more definitive evidence that these initiatives are improving demand and the company’s ability to command higher prices.

The revised price target of $7, down from $9, indicates Truist Securities’ updated valuation of Under Armour’s stock based on these factors. According to InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels. The analyst’s remarks underscore a need for caution and highlight the uncertainty facing the sportswear company as it attempts to strengthen its market position and financial performance in the medium to long term. Discover more detailed insights and 8 additional ProTips for Under Armour in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Under Armour Inc. reported a fourth-quarter loss per share of $0.08, which met analysts’ expectations, while revenues declined by 11.4% year-over-year, slightly better than anticipated. The company’s gross margin improved by 165 basis points to 46.7%, surpassing forecasts. However, the company has not provided full-year guidance due to macroeconomic uncertainties, including potential tariff impacts. Analysts from Morgan Stanley (NYSE:MS) maintained an Underweight rating with a price target of $4.00, citing concerns about the company’s earnings stability and growth prospects. BofA Securities revised its price target to $8.00 from $10.00, maintaining a Neutral rating, and expressed concerns over short-term tariff challenges but acknowledged potential long-term margin recovery. Evercore ISI and JPMorgan both lowered their price targets to $6.00, with Evercore ISI maintaining an Underperform rating and highlighting competitive market challenges. Stifel analysts noted that Under Armour’s turnaround efforts appear on track, with a focus on achieving top-line growth to sustain earnings growth. These recent developments indicate that Under Armour is navigating a complex landscape of competitive pressures and economic uncertainties.

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