UAA - Under Armour is cut at Morgan Stanley after turnaround hopes fades

Morgan Stanley downgrades Under Armour (NYSE:UAA) to an Equal-weight rating after having the athletic apparel stock slotted at Overweight. Analyst Kimberly Greenberger and team said the CEO departure announcement on top of pre-COVID performance challenges and recent earnings results impaired its confidence in the turnaround efforts. That led to lowered medium-term operating margin assumptions for UAA. "Valuation re-rating likely proves difficult in this market & will be dependent on revenue re-acceleration. Given supply challenges & freight delays, this may not occur until 4Q22 at the earliest." The firm assigned a price target of $11 to Under Armour (UAA). Shares of Under Armour (UAA) fell 5.60% following the CEO departure development.

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Under Armour is cut at Morgan Stanley after turnaround hopes fades