Under Armour (UA, UAA) "is turning its business around" as fiscal Q3 results "showed improvement in fundamental trends," UBS Securities said Thursday in a report.

Investors believe Q4 guidance "signals the company's self-help initiatives aren't working," UBS said. "We disagree and would view a pullback as an attractive buying opportunity."

The Q4 forecast is "very beatable given UAA has surpassed the sell-side's

quarterly EPS estimate for 10 consecutive quarters," UBS said. "We anticipate UAA's growth will surprise the market and cause sentiment to improve off of very low levels."

The company signaled China, Mexico, and Canada account for limited direct sourcing into the US, indicating little impact from possible US tariff increases, UBS said.

UBS maintained its buy rating on Under Armour stock with a $15 price target.

On Thursday, Under Armour reported Q3 adjusted earnings and revenue that fell less than expected by analysts.

Under Armour shares fell 4.3% in recent Friday trading.

Price: 6.74, Change: -0.30, Percent Change: -4.26