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What Wall Street Analysts Are Saying for Under Armour

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On the sidelines

As of January 10, of the 33 analysts covering Under Armour (UAA) stock, 18% recommend a “buy” and another 27% gave it a “sell” rating. The majority—55%—of analysts have retained their “hold” rating for Under Armour stock.

Under Armour is working on expanding its international business and developing its direct-to-customer business to drive its top-line growth. However, Under Armour has stated that the North America segment’s performance would be muted. This segment contributes a major chunk of overall sales.

Under Armour’s stock gained 22.5% in 2018. As of January 10, the stock has gained 8.7%. It last closed trading at $19.20.

In January so far, we’ve seen two price target changes for Under Armour. On January 2, Wells Fargo slashed its price target to $20.00 from $23.00. On January 7, UBS lowered the price target to $20.00 from $24.00.

At present, analysts’ 12-month average price target for Under Armour’s stock is $20.41, which reflects 6.3% upside to the stock’s price on January 10.

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Ratings for peers

For Nike (NKE), out of the 37 analysts covering Nike stock, ~68% have a “buy” rating. Another 30% have rated the stock a “hold.” On January 9, HSBC upgraded Nike (NKE) to “buy” from “hold” and raised its target price to $95.00 from $92.00. However, Baird cut its rating for Nike to “neutral” from “outperform.” Analysts’ 12-month average target price for NKE stock is $86.49, which reflects a 13.2% upside based on its January 10 stock price.

Of the 16 analysts covering Columbia Sportswear (COLM), 50% gave it a “buy” rating while the remainder rated it a “hold.” Columbia Sportswear’s mean target price is $101.40, indicating a 23.9% upside.

50% of the 14 analysts covering Skechers’ (SKX) stock have provided a “buy” rating, and the rest rated it a “hold.” On January 2, Wells Fargo lowered its price target for SKX to $26.00 from $30.00. On January 7, UBS also lowered its price target to $32.00 from $35.00. Skechers’ 12-month average target price is $31.92, indicating a 28.2% upside.

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