UAA - Under Armour clipped at Argus due to lofty valuation

Argus lowers its rating on Under Armour (UAA) to a Hold rating from Buy."The company also posted a full-year loss in 2020 and continues to restructure its operations. In addition, although UAA is making progress in lowering costs and should return to profitability this year, management still expects 2021 earnings to be below 2019 levels."Looking at fundamentals, Argus notes UAA is trading at 157X the firm's 2021 EPS estimate and 70X the 2022 estimate after the recent run-up in share price."While we have a favorable view of UAA's long-term prospects, we believe that it will need time to overcome current challenges and that a Hold rating is now appropriate."Piper Sandler took a more favorable view of Under Armour last week with an upgrade.

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Under Armour clipped at Argus due to lofty valuation