No-Moat Under Armour Showing Signs of Progress Despite Tough Market; Shares Attractive

No-moat Under Armour overcame challenging conditions to post results for its fiscal 2023 third quarter (ended December) that outperformed our expectations. The quarter was the final period before Stephanie Linnartz assumes the CEO role at the end of this month. We do not expect to make any material change to our $15.50 fair value estimate, and we still view the shares as undervalued. After years of restructuring, we believe Under Armour is making progress on its supply chain, distribution, and product initiatives.