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Under Armour's Turnaround May Take Time; Investors Should Wait For 'Clearer Signals,' Says Analyst

Published 23/05/2024, 17:25
© Reuters.  Under Armour\'s Turnaround May Take Time; Investors Should Wait For \'Clearer Signals,\' Says Analyst
UAA
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Benzinga - by Priya Nigam, Benzinga Staff Writer.

Under Armour Inc (NYSE:UAA) last week reported a revenue decline for the fourth quarter and received a downgrade from JPMorgan.

Positive change at the company could take time and investors should remain on the sidelines until there are "clearer signals of improving fundamental momentum," according to Oppenheimer.

The Under Armour Analyst: Brian Nagel downgraded the rating for Under Armour from Outperform to Perform.

The Under Armour Thesis: Management's new restructuring plan aims at streamlining the company’s operating model, Nagel said in the downgrade note.

Check out other analyst stock ratings.

Management plan to "reset meaningfully promotional activity at the brand" and has guided to a low double-digit decline in total revenues in fiscal 2024, he added.

"Senior leadership at UAA indicated clearly that meaningful levels of new, more-elevated products will not go to market until Fall/Winter of 2025," the analyst wrote. "We look upon a now less favorable sector backdrop as another, potentially significant hindrance to re-positioning efforts at Under Armour, nearer-term," he further stated.

UAA Price Action: Shares of Under Armour had declined by 2.52% to $6.78 at the time of publication on Thursday.

Now Read: Stock Market Reclaims Record Highs, Nvidia Tops $1,000 As AI-Driven Rally Resumes: Thursday’s Top Movers

Photo: Shutterstock

Latest Ratings for UAA

DateFirmActionFromTo
Mar 2022JP MorganMaintainsOverweight
Feb 2022BTIGUpgradesSellNeutral
Feb 2022Argus ResearchUpgradesHoldBuy
View More Analyst Ratings for UAA

View the Latest Analyst Ratings

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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