While Under Armour Inc UAA has the capacity for a turn-around in the longer term, it might deal with margin pressure from tariffs and wholesale unpredictability in the near term, according to BofA Securities.
The Under Armour Expert: Expert Lorraine Hutchinson restated a Neutral ranking, while minimizing the cost target from $8 to $6.50.
The Under Armour Thesis: The business might create weaker sales and lower margins through financial 2026 and 2027, generally due to tariffs, Hutchinson stated in the note.
Have a look at other expert stock rankings.
Under Armour had actually reported adjusted incomes in line with expectations in the very first quarter, as softer sales were balanced out by expense control, she included.
Management assisted to second-quarter sales and margins short of Street expectations, showing a 6% -7% decrease in sales and gross margin contraction of 340-360 basis points (bps), the expert specified.
” Management kept in mind both the customer and wholesale partners have actually been a little more reluctant in buying habits however 2Q need to mark the weakest sales development quarter of the year,” she even more composed.
UAA Cost Action: Shares of Under Armour had actually decreased by 4.50% to $5.20 at the time of publication on Monday.
• Under Armour Experts Slash Their Projections After Q1 Outcomes
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