Wells Fargo downgrades Under Armour as new analyst takes over

Wells Fargo analyst Will Gaertner downgraded Under Armour (UAA) to Equal Weight from Overweight with a price target of $8, down from $12, after taking over coverage of the name. Under Armour is likely to remain range bound for the next 6-12 months given its “outsized” North America wholesale exposure, elevated inventory and recent C-Suite reshuffling, the analyst tells investors in a research note. While Under Armour’s fiscal 2024 earnings guidance is “reasonable,” there is risk to its sales outlook, contends Wells. The firm expects the North America wholesale channel to remain difficult at least through the end of 2023.