In a report released today, Sam Poser from Williams Trading maintained a Buy rating on Under Armour (UAA – Research Report), with a price target of $14.00.
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Sam Poser has given his Buy rating due to a combination of factors indicating strong potential for Under Armour’s growth. The company delivered a strong performance in the third quarter of fiscal year 2025, surpassing expectations and subsequently raising its full-year guidance. This success is attributed to a strategic reduction in SKUs by 25%, an increase in full-price sales, and a more balanced product mix across different quality tiers. These measures, driven by a more patient and strategic approach under the leadership of founder Kevin Plank, suggest a promising trajectory for margin improvements and eventual revenue growth.
Furthermore, Under Armour’s efforts to streamline distribution and improve product positioning by retailer are key components of their strategy. The narrowing of assortments at moderate retailers, along with the anticipated recognition of higher-tier products in upcoming wholesale shipments and direct-to-consumer sales, points to a positive outlook. The ongoing 18-month restructuring plan, supported by the appointment of industry veteran Eric Liedtke, is showing promising results, particularly evident in the increased gross margins and reduced promotional activities observed in the third quarter. These factors collectively support Sam Poser’s Buy rating for Under Armour.
In another report released on January 28, UBS also maintained a Buy rating on the stock with a $15.00 price target.