Under Armour hit with underweight rating, Morgan Stanley doubts turnaround

Morgan Stanley resumed coverage of Under Armour with an Underweight rating.

The firm set a price target of $4.00, trailing the current $4.90 trading price.

Analysts expressed skepticism regarding market expectations for a near-term revenue growth turnaround.

Internal analysis indicates limited traction for the company's recovery efforts within a competitive and promotional sportswear market.

Morgan Stanley’s earnings per share estimates for fiscal years 2028-2030 remain significantly below current consensus.

The bank warns that these projections could trigger negative revisions and further stock price compression.