According to Morgan Stanley, the leadership change at Under Armor is another blow to investors hoping for change. Chief Executive Officer Patrik Frisk announced Wednesday that he is stepping down, effective June 1. Shares fell 5% in pre-market trading. Morgan Stanley analyst Kimberly Greenberger responded by downgraded Under Armor to the equivalent of overweight, saying Frisk’s decision “signals an underlying lack of confidence” in the company’s recovery plan. company. “Today’s CEO departure announcement, coupled with pre-Covid performance challenges and missed guidance & last fiscal year, dampen our confidence in this change,” Greenberger wrote. Greenberger writes. Under Armor shares have been depressed in 2022, with shares cut in half since the start of the year. Even with that drop, however, Under Armor may still be overvalued relative to its peers, Morgan Stanley said. “It’s difficult to make a valuation revaluation argument from here unless performance is rapidly increasing in material terms, which we consider uncertain given volatile macro and management revenues,” Greenberger wrote. . Morgan Stanley has lowered its price target to $11 per share from $14. Shares closed at $10.53 per share on Wednesday. – Michael Bloom of CNBC contributed to this report.