Under Armour, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Joseph Civello from Truist Financial maintained a Hold rating on the stock and has a $5.00 price target.
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Joseph Civello’s rating is based on several factors impacting Under Armour’s financial outlook. The company’s guidance for the second quarter of fiscal year 2026 fell short of market expectations, with shares dropping approximately 20% while the S&P saw a slight increase. Despite management’s optimism about certain positive developments, there remains significant pressure on the overall demand for Under Armour products.
Additionally, tariffs are placing considerable strain on profitability, with the company expecting a substantial impact on gross margins and operating income. Although Under Armour is implementing mitigation strategies, the benefits are not anticipated to materialize until fiscal year 2027. The company’s sales in North America and Asia-Pacific continue to face challenges, further affecting the top-line outlook. Given these factors, Civello has opted to maintain a Hold rating, awaiting clearer signs of a successful turnaround and improved demand driven by the company’s strategic investments.