Under Armour downgraded to Underperform from In Line at Evercore ISI

Evercore ISI analyst Michael Binetti downgraded Under Armour to Underperform from In Line with a price target of $7, down from $8, after the company announced that founder Kevin Plank will return as CEO, replacing Stephanie Linnartz, who joined last February. Plank’s return is a “clear signal” that Under Armour’s strategy isn’t working and supports the firm’s field work that show key performance indicators continue to deteriorate in the current quarter, the analyst tells investors. Evercore also thinks the most likely scenario Plank will pursue will include efforts to accelerate a return to North American revenue growth, which it thinks will add significant longer-term risk to the brand.