Citi has revised its price target for Under Armour (UA, Financial), lowering it from $8 to $6 while maintaining a Neutral rating on the company's shares. This adjustment comes as the firm updates its outlook for athletic brands to incorporate the influence of tariffs and a softer sales environment.
The revised estimates factor in a 10% tariff for global markets and a significant 60% tariff on goods from China, though Citi acknowledges that these conditions are subject to change. Despite the tariff challenges, the impact is believed to be manageable for most athletic brands and retailers, with minimal exposure to sourcing from China.
Citi's analysis suggests that brands with strong market momentum, capable of absorbing price increases, are better positioned. While Under Armour (UA, Financial) faces challenges, other brands such as Amer Sports, Deckers Outdoor, and On Holding are favored for their ability to navigate the current landscape more effectively.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Under Armour Inc (UA, Financial) is $10.00 with a high estimate of $10.00 and a low estimate of $10.00. The average target implies an upside of 84.16% from the current price of $5.43. More detailed estimate data can be found on the Under Armour Inc (UA) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Under Armour Inc's (UA, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Under Armour Inc (UA, Financial) in one year is $7.15, suggesting a upside of 31.68% from the current price of $5.43. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Under Armour Inc (UA) Summary page.
