Baird is losing faith in Under Armor’s ability to weather the current economic landscape and successfully execute its rebranding plan. “Our view of UAA’s short-term outlook has deteriorated significantly over the past two quarters and we now have much lower confidence that the multi-year rebranding and business are well priced enough. than in North America could offer similar earnings potential,” wrote analyst Jonathan Komp in a note to clients Thursday as he downgraded the stock to neutral. The downgrade from Baird comes on the back of Under Armor’s recent earnings report, in which the company cut its profit guidance for the full year as discounts hit margins. At the same time, founder Kevin Plank has provided an update on the search for the company’s CEO, which he says is expected to be selected by the end of 2022. Komp believes Under Armor could benefit. profits in the long run, but that depends. about the new CEO and how they execute their plans. At the same time, strategic direction and uncertain brand dynamics put the company’s products at risk of further price drops. “While we acknowledge low sentiment plus much higher long-term earnings potential, we believe UAA’s plan is to accelerate growth while cutting G&A/marketing and Facing difficulties across the industry can prove to be challenging,” Mr Baird said. cut its EPS estimates for fiscal years 2023 and 2024 and cut its price target to $10 per share, representing a roughly 7% increase from Wednesday’s end. – Michael Bloom of CNBC contributed reporting