Whereas Beneath Armour Inc UAA has the potential for a turnaround in the long term, it may face margin stress from tariffs and wholesale uncertainty within the close to time period, in response to BofA Securities.
The Beneath Armour Analyst: Analyst Lorraine Hutchinson reiterated a Impartial ranking, whereas lowering the value goal from $8 to $6.50.
The Beneath Armour Thesis: The corporate may generate weaker gross sales and decrease margins by fiscal 2026 and 2027, primarily because of tariffs, Hutchinson stated within the notice.
Take a look at different analyst inventory scores.
Beneath Armour had reported adjusted earnings consistent with expectations within the first quarter, as softer gross sales have been offset by value management, she added.
Administration guided to second-quarter gross sales and margins wanting Avenue expectations, reflecting a 6%-7% decline in gross sales and gross margin contraction of 340-360 foundation factors (bps), the analyst said.
“Administration famous each the buyer and wholesale companions have been barely extra hesitant in buying habits however 2Q ought to mark the weakest gross sales progress quarter of the yr,” she additional wrote.
UAA Worth Motion: Shares of Beneath Armour had declined by 4.50% to $5.20 on the time of publication on Monday.
Learn Extra:
• Beneath Armour Analysts Slash Their Forecasts After Q1 Outcomes
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