Undervalued Under Armour Is Worth a Look Despite Near-Term Challenges

With its shares down more than 40% this year, we think Under Armour is very undervalued and may be attractive to value investors. Although we rate it as a no-moat company, we think Under Armour, third largest in the U.S. sportswear market, stands to benefit from the ongoing popularity of activewear and the recovery of the market from the pandemic. Our fair value estimate is $16.30, implying upside of about 60% and 50% on its Class C and Class A shares, respectively.