Under Armour Inc.'s stock tumbled 4.8% in premarket trade Monday after the athletic apparel maker was downgraded at Morgan Stanley, which cited concerns over declining market share and falling average selling prices (ASPs). Analyst Jay Sole cut his rating to underweight, after being at equal weight the last two years. He slashed his stock price target to $62, which was 17% below Friday's closing price of $75, from $103. "Recent SportScan data shows [Under Armour] is losing market share for the first time in three years in apparel and, more surprisingly, ASPs are falling at an accelerating pace," Sole wrote in a note to clients. "Though warm weather surely explains some of this, we think [Under Armour] may be reaching maturity in U.S. apparel faster than previously thought." The stock, which is still up 11% over the past year, has tumbled 27% over the past three months, while the S&P 500 has lost 4.6%. The stock's premarket selloff puts it on course to open at the lowest level since February 2015.
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