🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

UBS keeps Buy on Under Armour stock, confident in growth, leadership change

EditorEmilio Ghigini
Published 19/03/2024, 13:02
© Reuters

On Tuesday, UBS reiterated its Buy rating on stock of Under Armour (NYSE:UA), Inc. (NYSE:UAA), maintaining a price target of $12.00.

The firm's positive stance on the athletic apparel company is rooted in several factors, including ongoing self-help initiatives that are expected to drive Under Armour back to mid-single-digit percentage annual sales growth and an EBIT margin nearing 10%. These initiatives are anticipated to contribute to upward revisions of the company's earnings per share (EPS).

Under Armour's recent change in leadership, with Kevin Plank resuming the role of CEO, has not altered UBS's outlook. The firm believes that the self-help efforts were in place prior to the brief tenure of outgoing CEO Stephanie Linnartz and are set to continue. While Linnartz's potential to accelerate change was recognized, it was not a core element of the initial investment thesis.

The firm's increased conviction in the Buy rating is partly due to the potential for the stock's price-to-earnings (P/E) ratio to expand if the company delivers EPS surprises. This optimism is linked to the perceived underlying strength of the Under Armour brand and the expected benefits from the company's strategic efforts.

Looking ahead, UBS expresses enthusiasm for the return of Kevin Plank as CEO, suggesting that his leadership may further enhance the stock's upside potential. The firm's commentary reflects confidence in the ongoing strategies and leadership at Under Armour to deliver value to shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.