Market lacks conviction in Under Armour inflection timeline, says Morgan Stanley

Morgan Stanley keeps an Underweight rating and a $4 price target on Under Armour (UAA) after the company’s Investor Day presentation. The management’s go-forward plan is “clear and focused” and the company’s new leadership is “credible”, but the market “lacks conviction” in the timeline that the company provided for the upward inflection. Morgan Stanley still sees a “structurally disadvantaged” positioning for Under Armour in an increasingly competitive sportswear market, though it intends to monitor new product launches, changes in customer age, sentiment shifts, the firm added.