Paul Lejuez, an analyst from Citi, maintained the Hold rating on Under Armour. The associated price target was lowered to $5.50.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Paul Lejuez has given his Hold rating due to a combination of factors impacting Under Armour’s current market position. The company’s first-quarter earnings per share slightly exceeded expectations, but the outlook for the second quarter suggests increasing challenges, particularly due to the tariff-impacted macroeconomic environment. Retailers are cautious with their spending, leading to a decrease in orders, which could result in continued market share losses for Under Armour.
Despite management’s optimism about future product responses, the company’s weak position makes it difficult to offset tariffs through price increases. The lowered earnings estimates and target price reflect these challenges, with expectations of weaker sales and higher expenses. While the stock has already seen a significant decline, the risk and reward appear balanced, justifying the Hold rating.
According to TipRanks, Lejuez is a 5-star analyst with an average return of 10.4% and a 58.64% success rate. Lejuez covers the Consumer Cyclical sector, focusing on stocks such as Deckers Outdoor, Dick’s Sporting Goods, and Urban Outfitters.