On Friday, Randal J. Konik of Jefferies lifted his price target on Under Armour (NYSE:UA) to $13 from his previous $11. He maintained his buy rating while doing so. The new target represents 37% upside to the athletic apparel maker's latest closing stock price.

The uptick comes on the same day Under Armour reported its Q2 of fiscal 2020 results. These would have been considered disastrous if it weren't for the coronavirus pandemic, which has caused significant economic damage to many business sectors (particularly retail). Under Armour's revenue fell 41% on a year-over-year basis, while GAAP net loss deepened by a factor of more than 10.

That performance, however, was well better than expected by analysts -- revenue was far higher than their average estimate, and per-share net loss on a non-GAAP (adjusted) basis considerably narrower.

New Orleans Saints' Deonte Harris modeling and Under Armour face mask

Image source: Under Armour.

Last Monday it was revealed that Under Armour founder and brand chief Kevin Plank, and CFO David Bergman, received Wells notices from the Securities and Exchange Commission (SEC). These inform a person or persons that the SEC aims to bring charges against them and give them an opportunity to address the charges.

In Under Armour's case, Plank's and Bergman's apparent transgressions have to do with the company's accounting of sales effected between Q3 of 2015 and Q4 of the following year. 

In a regulatory filing, Under Armour wrote that it "and the Executives maintain that their actions were appropriate and intend to pursue the Wells Notice process."

On Friday, the steep declines in fundamentals and possibly that regulatory news weighed on Under Armour stock, despite Konik's increased bullishness -- putting hopes of an upcoming rally in doubt. The shares fell by nearly 7%, in contrast to the gains of the wider equities market, and many consumer goods stocks on the day.