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Investing.com - Truist Securities has lowered its price target on Under Armour (NYSE:UA), Inc. (NYSE:UAA) to $5.00 from $7.00 while maintaining a Hold rating on the stock. According to InvestingPro data, the stock currently trades at a P/E ratio of 21.65, with analyst targets ranging from $4.00 to $14.50.
The price target reduction comes as Under Armour shares have declined approximately 20% against the S&P’s 1% gain after the company’s fiscal second-quarter 2026 guidance fell below market expectations.
Truist cited tariff headwinds as a key factor decreasing visibility into the company’s turnaround efforts, noting these tariffs create "incremental pressure on the bottom-line."
The research firm also highlighted that retailers likely remain hesitant with order volumes for less-proven sellers given current macroeconomic uncertainty.
While management has expressed optimism about emerging positive indicators, Truist stated it is "awaiting more signs that turnaround initiatives/heavy brand investments are helping to drive demand" before reconsidering its rating.
In other recent news, Under Armour reported its fiscal first-quarter 2026 results, which were mostly in line with analyst expectations, but the company provided weaker guidance for the second quarter. Stifel noted that while revenue exceeded projections by $2 million, adjusted earnings per share fell short by $0.01. The company also indicated that fiscal year 2026 profit could be half of fiscal year 2025 levels. Analysts have responded with several price target adjustments. Stifel lowered its price target to $9.00 but maintained a Buy rating. UBS reduced its price target to $7.50, citing the pronounced negative impact of tariffs on sales and margins, and significantly lowered its FY26 earnings per share estimates. Telsey Advisory Group adjusted its target to $5.00, pointing to an additional $100 million cost due to tariffs in fiscal year 2026. Evercore ISI also cut its price target to $5.00, highlighting weak pricing power and reducing its EPS forecast for the second quarter.
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