Under Armour cut to Hold at Stifel on ‘more challenging’ risk/reward

Stifel analyst Peter McGoldrick downgraded Under Armour (UAA) to Hold from Buy with a price target of $6, down from $9. The firm points to a more challenging risk/reward profile on the stock related to higher than previously anticipated SG&A expense, inflection to a normalized net debt position, and persistent challenges to topline growth, the analyst tells investors in a research note. Stifel adds it continues to view Under Armour as a credible brand that deserves more credit for pioneering athletic apparel, but takes a more cautious view on shares given the “structural realities” around global competition, decelerating international contribution, and higher investments.