Under Armour Inc. was downgraded Wednesday to a rare bearish rating at Susquehanna Financial, which cited the “reputational risk” created by the chief executive’s praise of President Donald Trump.
Analyst Sam Poser cut his rating on the athletic apparel and accessories company UAA, +0.11% to negative, after being at neutral since Jan. 31, and at positive since Aug. 11. Only four of the 310, or 1.3%, of the companies covered by Susquehanna were rated negative through Tuesday.
As I noted earlier this month, we continue to see this breakdown: Corporate boardrooms are looking for regulatory and tax relief and a pliant White House and currying favor to get it. This is especially the case in the manufacturing sector for non-consumer goods. But consumer brands increasingly recognize Trump as toxic to their future. Things get dicey when one corporation is operating on both channels at one time.