Shares of Under Armour Inc. dropped 1.3% in midday trade Monday, after Instinet turned bearish on the athletic apparel and accessories company, citing concerns that the company no longer warrants a high-growth valuation. Analyst Simeon Siegel cut his rating to reduce from neutral, and slashed his stock price target to $16, which was 26% below current prices, from $27. He wrote in a note to clients that Under Armour "appears to have matured past its high-growth phase, while still enjoying its high-growth multiple." He said that while he believes the company has an "exciting path" ahead in terms of sales growth, even in an overly optimistic scenario the stock is "fairly valued at best," and could be hurt by anything short of perfections. Under Armour's price-to-earnings ratio of 47.97, according to FactSet, was still nearly double rival Nike Inc.'s P/E ratio of 25.40. Under Armour's stock has plunged 30% over the past three months, while Nike's stock has soared 12% and the S&P 500 has gained 6.9%.
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