Under Armour Faces Challenges Amidst Intensifying Competition and Rising Tariffs, Analyst Maintains Hold Rating

In a report released today, John Kernan from TD Cowen maintained a Hold rating on Under Armour, with a price target of $4.00.

John Kernan has given his Hold rating due to a combination of factors affecting Under Armour’s market position. The company is operating in a highly competitive athletic apparel and footwear industry where barriers to entry have decreased, and competition from private labels and platforms is intensifying. Additionally, the sector is facing challenges from rising tariffs, which are impacting profit margins.
Given these conditions, Kernan has adjusted the price target to $4.00, down from a previous $6.00, and anticipates a significant cash burn for Under Armour in the fiscal year 2026. The uncertainty in the market, coupled with ambitious industry profit pool assumptions, suggests that Under Armour may continue to face financial difficulties without improvements in working capital management. As a result, Kernan’s Hold rating reflects the need for cautious optimism until market expectations are more realistically aligned.