Under Armour, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Paul Lejuez from Citi maintained a Hold rating on the stock and has a $5.00 price target.
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Paul Lejuez has given his Hold rating due to a combination of factors affecting Under Armour’s current market position. The company is expected to slightly exceed earnings expectations for the second quarter, but ongoing challenges in the North American market are anticipated to lead to weaker guidance for the third quarter. Competitive pressures and limited shelf space are contributing to these difficulties, and the brand’s current positioning lacks the momentum needed for a significant turnaround in the near term.
Additionally, the macroeconomic environment, including tariff uncertainties, further complicates Under Armour’s ability to improve its performance. The company’s brand strength and pricing power are not robust enough to navigate these challenges effectively. While there is a potential for a balanced risk/reward scenario in the upcoming earnings report, the overall sentiment remains negative, justifying the Hold rating.
According to TipRanks, Lejuez is a 5-star analyst with an average return of 9.9% and a 57.82% success rate. Lejuez covers the Consumer Cyclical sector, focusing on stocks such as Tapestry, Dick’s Sporting Goods, and Kohl’s.
In another report released on October 19, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $5.00 price target.