UPDATE: Stifel Downgrades Under Armour, Inc. (UAA) to Hold

Stifel analyst Jim Duffy downgraded Under Armour, Inc. (NYSE: UAA) from Buy to Hold with a price target of $24.00 (from $30.00).

The analyst comments "We are reducing our 12 mos. TP to $24 from $30 and downgrading shares to Hold from Buy, reflecting lower confidence in potential for revenue and margin upside across FY23. Fundamental improvement potential through FY23E appears appropriately reflected in consensus margin expectations. Earnings upside becomes more dependent on revenue acceleration/upside for which visibility is challenging and our confidence is low. Checks showing higher levels of outlet inventory vs. pre-pandemic levels raise concern of a return of promotional pressure to margins. We remain impressed with turnaround achievements and strategic direction and continue to see our prevailing estimates of $6bn sales and $0.82 EPS in FY23E as achievable. Lower confidence in upside potential, however, sobers our view of multiple potential, and we see risk/reward largely in balance. Our $24 target price reflects 16x EV/EBITDA on our FY23E estimate of $675mn."

For an analyst ratings summary and ratings history on Under Armour, Inc. click here. For more ratings news on Under Armour, Inc. click here.

Shares of Under Armour, Inc. closed at $22.37 yesterday.

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