Susquehanna upgrades Under Armour (NYSE:UAA) to a Neutral rating from Negative on its view that the company is well-positioned for 2021 after the pandemic gave it the needed time to reset its business.
Poser thinks Under Armour needs to focus back on the premium customer to get back on the right track.
"UAA must, in our opinion, pull back on its presence in the moderate channel at retailers such as Kohl's, Famous Footwear, DSW, SCVL, TJX, ROST, and BURL in order to become the premium brand it once was and to which it aspires to be. We have said for some time that the Under Armour brand belongs in the moderate channel (not the off-price channel), but it must be with product that is segmented from the better retailers," notes Poser.
