The "Canadian Buffett" consolidated 22% of Under Armour shares. How did the market react?

Fairfax Financial, the financial holding company owned by billionaire Prem Watsa, known as the "Canadian Warren Buffett," has increased its stake in sportswear manufacturer Under Armour to more than 22%. Investors, who watched the brand's stock price plummet throughout 2025, welcomed the deal with optimism.

Fairfax's report published on January 5 showed that by December 30, 2025, the Canadian company's stake in Under Armour had reached 22.2%, or nearly 42 million shares. Last month, the Toronto-based holding company also reported increasing its position in Under Armour: first to 9% (up to 17 million shares), and then to 16.1% (up to 30.5 million shares).

Under Armour is trying to recover after a difficult year in which its chief ambassador, Stephen Curry, one of the greatest basketball players in NBA history, severed ties with the brand, Bloomberg notes. Against the backdrop of a steady decline in revenue, the company's stock price plummeted 40% in 2025.

Following news of Fairfax's increased stake in Under Armour, the brand's shares rose more than 7% in extended trading on January 5. In over-the-counter trading organized by the American platform Blue Ocean ATS, the company's shares rose 2.5%.

UBS analyst Jay Soul stated late last week that he views Under Armour as a "turnaround stock": he expects the company to innovate in its products and improve its sales momentum. He argues that the brand is undervalued by the market, even though it still carries significant weight in the eyes of consumers. "Survey results indicate that the Under Armour brand is in the same class as Lululemon, Jordan, Adidas, Puma, On, Hoka, Skechers, and New Balance," MarketWatch quoted Soul as saying.

"The average market capitalization of these brands, which are traded on the stock exchange as independent companies, is $19 billion, compared to just $2.1 billion for Under Armour," the analyst noted. "We are not saying that Under Armour is worth $19 billion, but in our opinion, the gap in valuation between it and its competitors is too large."

According to Factset, Wall Street remains cautious about Under Armour. The consensus forecast for the brand's securities has remained unchanged in recent months — "hold." The average target price calculated by the service is $5.69 per Class A voting share, implying a 5% upside potential over the next year.

This article was AI-translated and verified by a human editor