UBS Remains on the Sidelines For Under Armour Inc (UA) After Tough Quarter

By Carly Forster

UBS analyst Michael Binetti weighed in on Under Armour Inc (NYSE:UA) shares prior to the company’s Q2 earnings set for July 26. The analyst hopes that UA will increase its distribution network due to a tough 2Q resulting from left over holiday inventory and the unforeseen bankruptcy of The Sports Authority.

The analyst believes UA must act fast to reverse slowing sales, including revamping U.S. athletic channel growth. Binetti notes that UA will likely launch distribution at Kohl’s which should minimize shareholder losses. The analyst predicts in line EPS for the quarter and slightly above expected revenue growth.

Binetti reiterates a Neutral rating on the company with a $39 price target.

According to TipRanks, Michael Binetti is ranked #554 out of 4,081 analysts. He has a 58% success rate recommending stocks with an average return of 6.7% per recommendation.