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Research Alert: CFRA Maintains Sell Opinion On Shares Of Under Armour, Inc.
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Research Alert: CFRA Maintains Sell Opinion On Shares Of Under Armour, Inc.
May 26, 2025 8:45 AM

11:25 AM EDT, 05/15/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our 12-month price target of $5, based on 12.5x our FY 26 (Mar.) EPS estimate and well below the company's three-year average forward P/E multiple of 19.8x. We raise our FY 26 EPS estimate by $0.05 to $0.40 and initiate our FY 27 EPS estimate at $0.45. UAA posted normalized Q4 (Mar.) EPS of -$0.08 vs. $0.11, in line with consensus estimates on revenues of $1.18B vs. $1.33B, which was $16M above estimates. By region in Q4, North America revenues declined 11% Y/Y, EMEA declined 2%, Asia-Pacific declined 27%, and Latin America declined 10%. By channel, Wholesale revenues declined 10% and Direct-to-Consumer declined 15%. Q4 gross margin expanded 170 bps Y/Y to 46.7% due to lower supply chain costs. The company expects revenues to decline 4% to 5% in Q1, with adjusted diluted earnings per share between $0.01 and $0.03. We see continued underperformance for UAA as the company struggles to capture the younger consumer and sees operating margin in line with department stores.

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