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Investing.com - UBS has reiterated its Buy rating and $8.00 price target on Under Armour (NYSE:UA), Inc. (NYSE:UAA) ahead of the company’s upcoming first quarter fiscal 2026 earnings report, scheduled for August 8. According to InvestingPro data, analyst targets for UAA range from $4.00 to $14.50, with the stock currently trading at $7.04.
UBS expects Under Armour to deliver "decent" fundamental trends in the first quarter, forecasting the company will beat earnings per share expectations by one cent. InvestingPro analysis shows positive indicators, with both net income and sales expected to grow this year, despite the company’s current unprofitable status.
Despite the anticipated earnings beat, UBS notes that market sentiment around Under Armour remains bearish due to perceived challenges in the company’s North America business, and the first quarter report is unlikely to change this view.
The investment firm also believes Under Armour will likely not provide second quarter or full-year fiscal 2026 guidance due to uncertainty related to tariffs.
The options market is pricing in a potential share price movement of plus or minus 8.3% following the earnings report, which is less than the historical average move of 9.9%, though UBS expects even less volatility than the market is currently anticipating.
In other recent news, Under Armour has settled consolidated derivative lawsuits against certain current and former officers and directors. The settlement involves corporate governance measures and a payment of $8.9 million, funded by insurance proceeds. UBS has reiterated a Buy rating on Under Armour with a price target of $8, emphasizing the brand’s strength and potential for better leverage. Stifel, while maintaining a Buy rating, has lowered its price target to $10 due to the company’s rebranding efforts and financial performance. Meanwhile, Truist Securities has adjusted its price target to $7, maintaining a Hold rating after Under Armour’s first-quarter 2026 guidance fell short of revenue expectations but exceeded on earnings per share.
Under Armour’s fourth fiscal quarter results met earnings expectations, supported by revenue and gross margin increases. However, the company is navigating tariff complexities affecting supply and demand dynamics, with no full-year 2025 guidance issued. Additionally, President Trump announced a trade deal with Vietnam, impacting Nike (NYSE:NKE) and Under Armour stocks positively.
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