Under Armour's (UAA) turnaround initiatives are generally encouraging but visibility into the company's forward growth remains limited at this stage, Truist Securities said in a Friday client note.

The sportswear company held its investor meeting on Thursday with senior management disclosing a detailed overview of its product, brand and commercial strategies to generate value for shareholders over the long term. The company also reaffirmed its outlook for fiscal 2025.

"We came away incrementally more positive on some of the product innovations the team is developing and progress/opportunities ahead as they work to optimize marketing plans and distribution," Truist said. "That said, visibility into forward growth remains fairly limited at this early stage of turnaround efforts and we await more concrete datapoints that show new products/strategies are helping to drive growth."

Last month, Under Armour said it expects per-share adjusted earnings to be in a range of $0.24 to $0.27 for fiscal 2025, up from previous projections of $0.19 to $0.21. The company at the time said its revenue in the year was still expected to post a low double-digit percentage decline, including a 14% to 16% drop in North America. The current consensus on FactSet for non-GAAP EPS is $0.27.

Under Armour is focusing on product segmentation between its wholesale and direct-to-consumer channels to elevate the brand, the brokerage said. Senior management acknowledged that the company's image has suffered from product overlap across the marketplace and product launches without clear marketing to drive demand, according to Truist.

The company is also streamlining its marketing efforts to focus more on team sports and the young athletic demographic. Truist sees team sports as an "attractive" long-term opportunity as it believes the company is better positioned to take share in this category than in others. However, the brokerage sees "some risk of potentially alienating current core customers."

"I am confident that our actions are gaining traction," Under Armour Chief Executive Kevin Plank said in a Thursday statement. "We are running a more agile and focused company, and our strategies are fostering renewed brand strength, which we believe will ultimately improve our ability to drive sustainable, profitable growth for our shareholders."

Truist is "generally encouraged" by the company's turnaround efforts but remains "cautious" on its ability to "generate full-priced demand at premium price points" while competing with rival brands.

Truist maintained its hold rating and $11 price target on Under Armour stock.