William Blair analyst Sharon Zackfia has reiterated their neutral stance on UAA stock, giving a Hold rating today.
Sharon Zackfia’s rating is based on a combination of factors, including expectations that Under Armour will surpass its fiscal fourth-quarter guidance, despite a projected revenue decline of 11%. This decline is partly attributed to the weakening dollar and anticipated challenges such as softness in the spring/summer order book and tough comparisons in the North American market due to last year’s high promotional activity.
Additionally, the company faces a challenging macroeconomic environment in the Asia-Pacific region, leading to a significant decline in sales there. While markdowns have slightly decreased year-over-year, the overall sales environment remains tough, with low-double-digit declines expected in both wholesale and direct-to-consumer channels. These factors contribute to the Hold rating, as they indicate potential challenges in achieving significant growth in the near term.
Zackfia covers the Consumer Cyclical sector, focusing on stocks such as CarMax, Lululemon Athletica, and Royal Caribbean. According to TipRanks, Zackfia has an average return of 12.5% and a 53.36% success rate on recommended stocks.
In another report released today, Telsey Advisory also maintained a Hold rating on the stock with a $7.00 price target.