Key insights
- Stifel downgraded Under Armour (UA) to 'Hold' with a reduced price target, signaling concerns about the company's turnaround. Rising SG&A expenses, slowing revenue, and a leveraged balance sheet are cited as headwinds. The firm also significantly lowered EPS estimates for FY27 and FY28, reflecting diminished profitability expectations. This news may negatively impact investor sentiment towards UA, but its limited market capitalization suggests a small influence on broader US equities.
Investing.com -- Brokerage firm Stifel downgraded Under Armour to “Hold” from “Buy” and slashed its price target to $6 from $9, citing a longer-than-expected turnaround and mounting pressure on profitability.
In a research note published Tuesday, Stifel said the athletic apparel maker’s recovery faces headwinds from rising SG&A expenses, slowing revenue momentum, and a shift toward a more leveraged balance sheet. The firm also cut its FY27 adjusted EPS estimate to $0.12 from $0.24 and lowered FY28 expectations to $0.20 from $0.45.