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Investing.com - Stifel lowered its price target on Under Armour (NYSE:UA), Inc. (NYSE:UAA) to $9.00 from $10.00 on Monday, while maintaining a Buy rating on the athletic apparel maker’s stock. The stock, currently trading at $5.44, has declined nearly 20% in the past week, with InvestingPro data showing the RSI in oversold territory.
The price target reduction follows Under Armour’s fiscal first-quarter 2026 results, which Stifel described as "mostly inline." However, the company provided weaker guidance for the second quarter and indicated that fiscal year 2026 profit could be half of fiscal year 2025 levels. Despite current challenges, the company maintains a moderate debt level and healthy liquidity, with a current ratio of 1.53x.
Under Armour faces significant headwinds, including approximately $100 million in unmitigated tariff impacts at current rates affecting three quarters of the fiscal year. Regionally, the company continues to see strength in EMEA markets, while North America, which represents 59% of revenue, continues to underperform. InvestingPro analysis reveals 13 additional key insights about Under Armour’s performance and prospects, available exclusively to subscribers.
The accessories category has shown some positive movement, though this has not yet translated to improved performance in the apparel segment. Stifel noted it is watching for traction in Under Armour’s price-to-value strategy to influence trends.
Despite the reduced price target, Stifel maintained its Buy rating, stating that current market prices discount Under Armour’s ability to return to profitable growth. The firm’s $9 price target reflects a 0.8x enterprise value to sales multiple, with Stifel citing the company’s brand value and global reach as supporting factors for an eventual turnaround.
In other recent news, Under Armour has seen a series of adjustments to its stock price targets by various analyst firms. UBS lowered its price target for Under Armour to $7.50 from $8.00, citing significant concerns over tariffs negatively impacting sales and margins for fiscal year 2026. Telsey Advisory Group also reduced its price target to $5.00 from $7.00, pointing to an additional $100 million in costs due to tariffs, which are expected to cut operating profit to half of fiscal year 2025 levels. Evercore ISI further decreased its price target to $5.00 from $6.00, highlighting weak pricing power and a significant reduction in earnings per share forecast for the second fiscal quarter.
Despite these challenges, Stifel reiterated its Buy rating and maintained a $10.00 price target following Under Armour’s fiscal first-quarter 2026 results, which showed revenue exceeding projections by $2 million. However, adjusted earnings per share came in $0.01 below expectations. UBS had earlier maintained an $8.00 price target ahead of the first-quarter report, forecasting the company would beat earnings per share expectations by one cent. These recent developments reflect varying analyst perspectives on Under Armour’s financial outlook amidst tariff-related challenges.
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