What Wall Street Thinks of Under Armour ahead of Q2 Results

Discussing Wall Street recommendations

Under Armour (UAA) is a well-covered stock and is tracked by 34 Wall Street analysts. The company is rated a 3.1 on a scale where one is a strong buy and five is a strong sell. Competitors NIKE (NKE), Columbia Sportswear (COLM), and Lululemon Athletica (LULU) have stronger ratings of 2.3, 2.3, and 2.2, respectively.

What Wall Street Thinks of Under Armour ahead of Q2 Results

Who suggests holding UAA

Of the 32 analysts covering UAA, 53% recommend holding the stock. Deutsche Bank, Goldman Sachs, Cowen & Co, and Buckingham Research are among the investment firms that suggest holding the company.

Cowen & Co analyst John Kernan reiterated his “market perform” rating on UAA on July 12, citing improving consumer perceptions and recovering domestic and international sales. He believes that UAA’s second quarter and full-year guidance is achievable. However, he remains on the sidelines due to the recent stock rally and high valuations.

Deutsche Bank upgraded UAA in April to a “hold” from “sell,” citing the company’s strong international potential. “The opportunity to grow internationally on the top-line remains robust as Under Armour’s peers in the athletic space continue to produce outsized growth,” said analyst Paul Trussell.

Who’s positive?

Around 18% of analysts covering Under Armour recommend buying its stock. Jefferies and Stifel are among the firms that have set a buy on the stock.

Stifel analyst Jim Duffy recently reiterated a “buy” rating on UAA, saying the second quarter would be a “stepping stone towards stabilization” for the company. He believes inventories will prove to be a key turnaround for the company and will be a “precursor to margin inflection” during the second half of the year.

Who’s negative?

29% of analysts have set UAA’s stock as a “sell.” It has the highest proportion of sell recommendations among sportswear stocks. In comparison, Nike, Lululemon Athletica, and Columbia Sportswear are recommended as a sell by 6%, 3%, and 0% of analysts.

Susquehanna, Macquarie, and Wells Fargo are among the brokers who suggest selling UAA.