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Investing.com - Evercore ISI has reduced its price target on Under Armour, Inc. (NYSE:UAA) to $4.00 from $5.00 while maintaining an Underperform rating on the stock. The new target aligns closely with UAA’s current price of $4.55, which has plummeted nearly 60% over the past year and now trades just above its 52-week low of $4.35, according to InvestingPro data.
The research firm cited concerns about Under Armour’s profitability, noting that with fiscal year 2026 guidance reinstated, it’s become clearer that the company is "barely EPS profitable." InvestingPro data shows UAA is quickly burning through cash with negative free cash flow of -$321.81 million in the last twelve months, despite maintaining a current ratio of 1.69, indicating its liquid assets exceed short-term obligations.
Evercore ISI highlighted that Under Armour’s guidance for a fiscal third-quarter EPS loss of ($0.03) to ($0.02) suggests the company could lose money during retail’s most important quarter.
North America sales continued to decelerate on both one-year and two-year bases, with one-year figures down 8% and two-year metrics showing a 140 basis point deceleration compared to the first fiscal quarter.
While Under Armour attempted to isolate U.S. wholesale problems to footwear, where global sales fell 16%, Evercore ISI noted that global apparel also decelerated another 300 basis points on a two-year basis.
In other recent news, Under Armour has been the subject of varied analyst opinions. UBS reiterated its Buy rating on Under Armour, maintaining a $7.50 price target, citing the enduring value of the company’s brand name and expressing confidence in a strong turnaround by fiscal year 2027. Similarly, Stifel also maintained a Buy rating with a $9.00 price target, viewing the company’s shares as a "contrarian value opportunity" given its market cap and revenue run rate. Conversely, Rothschild Redburn downgraded Under Armour from Buy to Neutral, reducing the price target to $6.00, reflecting concerns over a delayed recovery timeline. BTIG initiated coverage with a Neutral rating, noting improved business discipline but indicating that results from CEO Kevin Plank’s leadership will take time to materialize. Meanwhile, Lululemon Athletica faced a reduced price target from Jefferies, down to $120 from $150, due to competition concerns and parallels drawn with Under Armour’s past challenges. These developments reflect a mixed sentiment among analysts regarding Under Armour’s future prospects.
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