Under Armour (UA, UAA) faces a shift to a bullish investor outlook in 2025, fueled by "significant" innovation, revamped marketing and leadership changes, UBS Securities said Tuesday in a report.

"Innovation will accelerate its sales growth rate, causing sentiment to flip to positive from negative and driving upward EPS revisions," UBS said.

Product launches and a streamlined marketing approach, combined with a focus on key organizational enhancements, are expected to improve brand momentum, UBS said.

Under Armour "has a large existing marketing budget at its disposal and wide-reaching brand awareness," the report said. "This is a meaningful advantage over smaller DTC-led athleticwear brands"

UBS has a buy rating on Under Armour stock with a $16 price target. The apparel maker held an investor day on Thursday to outline strategy in the next one to two years.

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