Truist Securities has increased its 12-month price target for Under Armour, Inc. to $8.00 from $6.00 while maintaining a Hold rating on the shares. The revised target approaches the stock’s current trading price of $7.49 and follows a quarter in which the company delivered results ahead of expectations and raised guidance.
The athletic apparel maker’s recent quarter produced a material beat versus analyst estimates, and management lifted its fiscal year guidance for most metrics toward the higher end of prior ranges. The company’s shares have climbed about 17% over the period in question, compared with an approximate 2% gain for the S&P during the same span.
Truist highlighted that a substantial portion of the quarter’s earnings-per-share upside was driven by wholesale timing and a tax adjustment. Despite that, the firm pointed to three elements that suggest its updated outlook may still err on the conservative side: a modestly stronger fiscal year view overall; management’s upbeat commentary around stabilizing trends in fiscal 2027 for areas that had been pressured, namely North America, APAC, and Footwear; and significant recent insider purchases.
Even with the higher price target, Truist opted not to move to a Buy stance. The firm said it remains on the sidelines until there is "more visibility into durable improvements to underlying demand trends" for the company.
Other market developments have added to investor interest. Fairfax Financial disclosed a 22.2% stake in Under Armour, reporting the purchase of 41,958,923 Class A shares for investment purposes. This sizeable position indicates a substantial commitment by that investor and could lead to further activity depending on market conditions.
Brokerage actions have varied. UBS reiterated a Buy rating on Under Armour and kept its price target at $8.00, highlighting what it views as the company’s turnaround potential and projecting a 25% five-year earnings-per-share compound annual growth rate. Baird moved its price target to $7.00 and retained a Neutral rating, noting that macroeconomic factors could create favorable conditions for the company.
Taken together, the mix of a quarter that beat expectations, upwardly revised guidance, analyst target changes, and a large disclosed stake combine to keep Under Armour squarely in investors’ focus. Market participants will likely be monitoring whether the improvements cited by management and analysts translate into sustained demand across key regions and product categories.
Contextual note: The coverage here reports the recent analyst and investor actions and the company’s reported financial performance as described above. Where the underlying picture remains mixed, market observers continue to seek clearer evidence of durable demand improvements before shifting recommendations.