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Investing.com - Williams Trading lowered its price target on Under Armour (NYSE:UA), Inc. (NYSE:UAA) to $7.00 from $10.00 on Tuesday, while maintaining a Buy rating on the athletic apparel maker’s stock. According to InvestingPro data, the stock is currently trading below its Fair Value, with analyst targets ranging from $4.00 to $13.80.
The firm cited a longer-than-expected timeline for brand improvements to become visible to investors, despite ongoing positive evolution in the company’s management and brand positioning.
Williams Trading noted that while Under Armour’s first-quarter fiscal 2026 results met expectations, the second-quarter guidance and revised outlook for the full fiscal year were disappointing.
The research firm pointed to potential tariff impacts causing retailers to become more cautious, resulting in aggressive attempts to secure proven products while showing less willingness to test new items.
Despite these headwinds, Williams Trading expressed confidence that the Under Armour brand is slowly improving its market position, with the company’s increasing focus on premium products beginning to show success, albeit on a limited scale.
In other recent news, Under Armour’s fiscal outlook has prompted several changes in analyst ratings and price targets. CFRA has upgraded Under Armour’s stock rating from Sell to Hold, maintaining a $5.00 price target due to fair valuation and reduced expectations. Meanwhile, Truist Securities has lowered its price target from $7.00 to $5.00, citing Under Armour’s fiscal second-quarter 2026 guidance falling short of market expectations. Similarly, Stifel adjusted its price target to $9.00 from $10.00 after the company’s first-quarter results were mostly in line but with a weaker second-quarter outlook.
UBS has also reduced its price target to $7.50 from $8.00, highlighting tariffs’ negative impact on sales and margins for fiscal year 2026. Telsey Advisory Group has further lowered its price target to $5.00, noting an additional $100 million tariff cost that will significantly reduce operating profit. These recent developments reflect ongoing concerns about Under Armour’s financial performance amid tariff challenges and lowered profit forecasts for fiscal year 2026.
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