Under Armour stock price target lowered to $5 at Evercore ISI on weak pricing power

Investing.com - Evercore ISI has reduced its price target on Under Armour (NYSE:UA), Inc. (NYSE:UAA) to $5.00 from $6.00 while maintaining an Underperform rating on the stock. The company, currently trading at $5.37, has seen its shares decline nearly 20% year-to-date, according to InvestingPro data.

The firm significantly cut its earnings per share (EPS) forecast for the second fiscal quarter to $0.02, down from its previous estimate of $0.24 and below the Street consensus of $0.26.

Evercore ISI also lowered its full-year 2026 EPS projection to $0.26, compared to its prior forecast of $0.42 and the Street estimate of $0.32.

The downward revision reflects concerns about Under Armour’s lack of pricing power and insufficient innovation to drive meaningful growth in the current market environment.

The research firm also cited stronger competitors aggressively positioning for shelf space in Under Armour’s most important retail channels and challenges the company faces in navigating upcoming tariff scenarios.

In other recent news, Under Armour reported its fiscal first-quarter 2026 results, with revenue slightly surpassing Stifel’s estimates by $2 million. However, the company’s adjusted earnings per share fell short by $0.01 compared to expectations. Despite this, Stifel reiterated its Buy rating and maintained a $10.00 price target for Under Armour. UBS also maintained its Buy rating with an $8.00 price target, anticipating that Under Armour would exceed earnings per share expectations by one cent in the upcoming report.

Additionally, Under Armour has reached a settlement in consolidated derivative lawsuits involving some of its current and former officers and directors. The settlement includes implementing corporate governance measures for three years and an $8.9 million payment to the company, funded by insurance proceeds. Meanwhile, a trade agreement between the U.S. and Vietnam was announced, which could impact companies like Under Armour, though details are still emerging. UBS analyst Jay Sole expressed confidence in Under Armour’s brand strength and potential, highlighting the company’s recent organizational improvements and innovation enhancements.

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