UAA - Under Armour is clipped to a Neutral rating at J.P. Morgan
2023-03-13 06:49:19 ET
J.P. Morgan lowered Under Armour ( NYSE: UAA ) to a Neutral rating after having the athletic apparel stock slotted at Overweight.
A major headwind seen for Under Armour ( UAA ) is an industry inventory overhang heading into the summer and fall seasons. An increase in promotional activity is expected to hold back revenue.
"While we see secular health/wellness and casualization tailwinds providing Sportswear sector insulation, Under Armour’s size/scale in relation to peers raises topline growth & margin risk, noting UAA historically has underperformed on revenue growth relative to the Sportswear industry & peers," noted analyst Matthew Boss.
The firm assigned a new price target of $10 to UAA based on a 6.5X multiple to the CY24 EBITDA estimate.
Shares of Under Armour ( UAA ) fell 1.25% in premarket trading to $8.80.
Read the latest breakdowns on Under Armour ( UAA ) from Seeking Alpha contributors.
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Under Armour is clipped to a Neutral rating at J.P. Morgan