William Blair analyst Sharon Zackfia has maintained their neutral stance on UAA stock, giving a Hold rating on July 21.
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Sharon Zackfia’s rating is based on a combination of factors influencing Under Armour’s current market situation. The company is expected to meet its fiscal first-quarter guidance, but there are notable challenges in its revenue projections. Specifically, a decline in revenue is anticipated, with North America experiencing a slightly larger drop than initially guided, due to weaker spring/summer orders and adjustments in direct-to-consumer promotional activities.
Internationally, while there is some positive movement in regions like EMEA, this is counterbalanced by declines in APAC as the company works to realign its business strategies. Additionally, both wholesale and direct-to-consumer channels are expected to see declines, particularly in apparel and footwear categories, as Under Armour focuses on optimizing its product offerings. These mixed signals in performance and strategic adjustments contribute to the Hold rating, indicating a cautious outlook on the stock’s immediate potential.
In another report released on July 21, Goldman Sachs also maintained a Hold rating on the stock with a $6.50 price target.