Under Armour Slashed to Underperform at Evercore

Under Armour Slashed to Underperform at Evercore March 14, 2024, 10:29 a.m., readers: 2

Evercore ISI analysts downgraded Under Armour (NYSE:UAA) to Underperform from In Line, adjusting the price target from $8.00 to $7.00. The analysts’ decision comes in the wake of Under Armour's announcement that founder Kevin Plank will reassume the CEO position, taking over from Stephanie Linnartz who had just joined the company as CEO in February 2023. This leadership change signals, in the analysts’ perspective, an acknowledgment that the current strategic direction for Under Armour is not yielding the desired outcomes. Moreover, based on Evercore’s field research, there's an ongoing deterioration in Under Armour's key performance indicators (KPIs) within the current quarter. The analysts speculate that Plank's strategy is likely to focus on stimulating revenue growth in North America—a market segment that, excluding the COVID-19 impact, hasn't seen growth since 2017. This approach, the analysts believe, could introduce considerable long-term risks to the brand.