William Blair analyst Dylan Carden has maintained their neutral stance on UAA stock, giving a Hold rating today.
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Dylan Carden has given his Hold rating due to a combination of factors impacting Under Armour’s financial outlook. The company has expanded its restructuring plan for fiscal 2025, which now includes higher pretax restructuring charges than initially estimated. This expansion involves significant cash-related and noncash charges, including costs related to employee severance and contract terminations.
Additionally, Under Armour’s decision to end its partnership with Steph Curry, despite not expecting a significant financial impact, reflects a strategic shift in its branding approach. The company’s updated guidance indicates an expected GAAP operating loss, although adjusted operating income projections have been raised slightly. These developments, along with mixed second-quarter results, suggest a cautious approach, leading to the Hold rating.