UAA - Under Armour is clipped at Baird due to uncertain macro backdrop
Baird lowered its rating on Under Armour ( NYSE: UAA ) ( UA ) to Neutral from Buy after warning that the athletic apparel company's comeback is threatened by macro headwinds.
Analyst Jonathan Komp said UAA's FQ1 results were relatively in-line, but pointed to selected pockets of weakness and a much lower margin outlook for FY23 that materially weighs on the current earnings visibility.
"While we believe UAA can achieve higher profitability over a longer-term horizon with consistent execution under the right leadership, multiple factors are contributing to heightened F2023-2024E earnings risk amid an uncertain macroeconomic environment. We are lowering F2023E EPS to $0.30 (below guide) while trimming F2024E to $0.45 embedding expectations for a more challenging economy."
After factoring in the new earnings estimates, Baird took its price target on Under Armour ( UAA ) down to $10.
Shares of UAA fell 0.54% premarket to $9.28.
The Seeking Alpha Quant Rating on Under Armour is at Hold.
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Under Armour is clipped at Baird due to uncertain macro backdrop