Under Armour shares plummet after analyst downgrade

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Under Armour ($NYSE:UAA) shares took a hit on Wednesday after analyst firm Oppenheimer downgraded the stock and slashed its price target. Oppenheimer has adjust its price target for Under Armour to $15 from $34 while maintaining its outperform rating. In a note to clients, the firm cited concerns about the company’s slowing growth and mounting debt levels. Under Armour has been struggling in recent quarters as it grapples with intensifying competition from the likes of Nike and Adidas.

The company has also been weighed down by a string of accounting and other scandals. Despite the challenges, Oppenheimer remains bullish on Under Armour’s long-term prospects. The firm believes the company’s brand still has a lot of appeal and that it is well-positioned to capitalize on the growing demand for athleisurewear.

Price History

On Thursday, shares of Under Armour plummeted after an analyst downgrade. The stock opened at $7.0 and closed at $6.6, down by 4.3% from the prior closing price of $6.9. This downgrade comes as a surprise to many, as Under Armour has been struggling recently. The company has faced challenges with declining sales, inventory issues, and competition from other sportswear brands.

In addition, its founder and CEO, Kevin Plank, has come under fire for his support of President Donald Trump. Despite these challenges, Under Armour remains a strong brand with a loyal customer base. It will be interesting to see how the company responds to this latest setback. Live Quote…

About the Company

VI Analysis

Company’s fundamentals are important indicators of its long term potential. The VI app makes it easy to analyze a company’s financials and business risk. According to the VI Risk Rating, UNDER ARMOUR is a medium risk investment in terms of financial and business aspects. The app has detected 2 risk warnings in the income sheet and balance sheet. Register with us to check it out. More…

VI Peers

Under Armour, Inc. is an American company that manufactures footwear, sports, and casual apparel. Founded in 1996 by Kevin Plank, a former University of Maryland football player, Under Armour is the second-largest sportswear manufacturer in the United States. UA’s competitors include Nike, Lululemon Athletica, and Capri Holdings.

– Nike Inc ($NYSE:NKE)

Nike Inc is a publicly traded company with a market capitalization of 137.7 billion as of 2022. The company has a return on equity of 25.1%. Nike is a designer, manufacturer, and marketer of athletic footwear, apparel, equipment, and accessories. The company’s products are sold in over 190 countries worldwide. Nike has endorsement deals with some of the world’s most popular athletes, including LeBron James, Cristiano Ronaldo, and Tiger Woods.

– Lululemon Athletica Inc ($NASDAQ:LULU)

Lululemon Athletica Inc. is a Canadian athletic apparel retailer. The company was founded in 1998 by Chip Wilson and is headquartered in Vancouver, British Columbia. Lululemon Athletica Inc. designs, manufactures and markets athletic apparel and accessories for women, men and girls. The company’s product line includes pants, shorts, tops, jackets, hoodies, and accessories such as bags, socks, and headwear. Lululemon Athletica Inc. also operates a website and provides online shopping services. As of 2022, the company’s market cap is $37.96 billion and its ROE is 34.51%.

– Capri Holdings Ltd ($NYSE:CPRI)

Capri Holdings Ltd is a fashion company with a market cap of 5.96B as of 2022. The company has a Return on Equity of 25.1%. Capri Holdings Ltd is a luxury fashion company that owns and operates a portfolio of iconic fashion brands, including Michael Kors, Versace, and Jimmy Choo. The company’s brands are available in more than 100 countries through a network of company-operated stores, licensed stores, and e-commerce sites.

Summary

Investing in UNDER ARMOUR may be a good choice for investors who are looking for a company with a strong brand and a history of solid financial performance. The company has a diversified product line and a growing international presence. However, UNDER ARMOUR faces significant competition from other athletic apparel companies, and its stock price is not cheap.