Under Armour (UAA – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Alexandra Straton from Morgan Stanley maintained a Sell rating on the stock and has a $4.00 price target.
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Alexandra Straton’s rating is based on several factors contributing to a cautious outlook for Under Armour. The absence of full-year guidance and a conservative first-quarter earnings projection have led to limited confidence in near-term earnings potential. Despite some de-risking in earnings projections, there remains a possibility for negative medium-term earnings revisions.
Furthermore, the market seems to be prematurely optimistic about Under Armour’s potential turnaround, expecting significant improvements by fiscal year 2027, which Straton finds questionable. The company’s high valuation, coupled with its challenging position in a fragmented sportswear market, adds to the skepticism. The lack of visible signs of a turnaround further supports the Sell rating, with a price target set at $4, indicating potential downside risk.
In another report released yesterday, J.P. Morgan also maintained a Sell rating on the stock with a $6.00 price target.