UAA - Under Armour is defended at Morgan Stanley after share price collapse

Morgan Stanley defended Under Armour (NYSE:UAA) after the company was punished last Friday with a 24% decline in share price following a transition quarter and soft guidance. Analyst Kimberly Greenberger called the share price collapse extreme in light of UAA's potential beat and raise trajectory this year, which she said could support stock gains from here. Pre-COVID performance challenges and the earnings miss are said to have likely impaired market confidence in the UAA turnaround, meaning it could take two to three beat and raise quarters to fully restore investor confidence and see the stock to re-rate to its prior level. Playing the long game, Morgan Stanley kept an Overweight rating on Under Armour (UAA), but dropped its price target to $14. Elsewhere on Wall Street, price target cuts were in from Deutsche Bank (to $21 from $35), B. Riley Securities (to $11 from $18), Cowen (to $17 from $27)

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Under Armour is defended at Morgan Stanley after share price collapse