Under Armour's New CEO May Go Through Learning Curve Before Delivering, Says Analyst

Wedbush analyst Tom Nikic reiterated an Outperform rating on the shares of Under Armour Inc UAA with a price target of $11.00.
The company announced the appointment of Stephanie Linnartz as President and CEO following an extensive search of internal and external candidates.
Her tenure will become effective on February 27, 2023, said the analyst.
Colin Browne, who currently serves as interim CEO, will resume his prior role as COO upon Ms. Linnartz’s arrival.
Linnartz most recently served as the President of Marriott International Inc MAR beginning in February 2021.
She has extensive experience building omnichannel experiences, developing efficient operational structures, and currently oversees Marriott’s rewards program, the analyst cited.
She has also developed successful multi-year partnerships with the NFL, NCAA, and the Mercedes-AMG PETRONAS F1 Team, the analyst quipped.
Nikic thinks Linnartz appears to be a capable executive and has experience working at a global business and executing initiatives that are applicable to both hotels and apparel.
That said, the biggest concern would be the lack of athletic industry experience.
It’s a highly competitive and challenging industry, and the analyst’s concern would be that there may be a learning curve, particularly in the areas of the business that are not translatable to hotels.
So the analyst thinks investors will take a wait-and-see approach, with bulls hoping that an outsider’s point of view will be enough to shake things up and allow UAA to fulfill its long-term potential.
Price Action: UAA shares are trading lower by 3.74% at $9.73 on the last check Thursday.

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