UAA - Under Armour is cut at Wells Fargo with stock now seen as a Show Me' story
2023-06-23 07:54:26 ET
Wells Fargo downgraded Under Armour ( NYSE: UAA ) on Friday to an Equal Weight rating from Overweight on its view the stock is now a "Show Me" Story.
Analyst Will Gartner said Under Armour ( UAA ) is likely to remain range bound for the next 6 months to 12 months. In particular, Gartner warned on outsized North American wholesale exposure for UAA, elevated inventory, and recent C-Suite reshuffling moves.
The crux of the ratings cut is that Wells Fargo expect the North American wholesale channel to remain difficult at least through the end of the year, which is seen being a likely drag on revenue growth. The firm lowered its FY24 North American revenue growth to -2.2% vs. -1.4% prior and -1.8% consensus.
"While FY24 EPS guidance is reasonable, we do see risk on the top line (flat to slightly + guide), given demand dynamics in NA & EMEA."
Shares of Under Armour ( KMX ) dropped 2.72% in premarket trading to $7.15 vs. the 52-week trading range of $6.38 to $13.05. The athletic apparel stock trades below its 50-day, 100-day, and 200-day moving averages.
More on Under Armour:
- Under Armour: Strong Brand Oversold
- Growth metrics on Under Armour
- Recent options trades on Under Armour
- Seeking Alpha's Quant Rating for Under Armour
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Under Armour is cut at Wells Fargo with stock now seen as a Show Me' story