On Friday, UBS analyst Jay Sole confirmed a Buy rating on Under Armour (NYSE:UA), Inc. (NYSE:UAA) with a consistent price target of $15.00. The stock, currently trading at $7.37, has seen an 8.98% decline over the past week. According to InvestingPro data, the broader analyst consensus is moderately bullish, with price targets ranging from $4 to $15. Sole’s assessment is based on the belief that Under Armour is successfully revamping its operations, as indicated by their third-quarter performance which showed a positive shift in fundamental trends. While InvestingPro analysis indicates the company is currently undervalued, it maintains a "Fair" overall financial health score, with revenue of $5.32 billion in the last twelve months.
Under Armour’s fourth-quarter forecast is considered highly achievable, especially given the company’s history of exceeding sell-side quarterly earnings per share (EPS) estimates for the past 10 consecutive quarters. The analyst is optimistic about the company’s ongoing transformation initiatives, its platform for innovation, and its effective cost management strategies, which are expected to result in an approximate 19% five-year EPS compound annual growth rate (CAGR).
Sole also expects that Under Armour’s growth could catch the market by surprise, leading to an improvement in market sentiment from its current low levels. The $15 price target set by UBS suggests a significant 97% potential upside from the stock’s present value. The endorsement from UBS comes amid Under Armour’s efforts to streamline its business and strengthen its market position through strategic initiatives.
In other recent news, Under Armour has seen various shifts in stock price targets by different analyst firms. Citi revised its price target for Under Armour to $8.00 from $12.00, following the company’s third-quarter earnings report. The report revealed earnings per share (EPS) of $0.08, surpassing the consensus estimate of $0.04, primarily due to stronger sales and gross margin. However, Citi anticipates less potential for EPS growth in fiscal year 2026.
On the other hand, CFRA analyst Zachary Warring increased the firm’s price target for Under Armour to $5.00 from $4.00. Despite the adjustment, CFRA maintains a Sell rating on the company’s shares. Under Armour’s Q3 earnings showed an EPS of $0.08, which was higher than consensus estimates, and a revenue of $1.40 billion, surpassing estimates by $62 million.
UBS analyst Jay Sole adjusted the price target for Under Armour to $15.00 from $16.00, while maintaining a Buy rating on the stock. Sole believes that the anticipated in-line third-quarter EPS result, coupled with the potential for gross margin improvement, should support the company’s outlook.
However, Argus analysts downgraded Under Armour from Buy to Hold, due to the company’s ongoing challenges post-pandemic and declining revenues across its product lines. These are recent developments and provide investors with key insights into Under Armour’s current financial standing and market position.
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