No, Under Armour Isn’t Too Expensive, Morgan Stanley Says

Remember when Under Armour ( UAA ) was going to be the next Nike ( NKE )? Now it's not even the next Lululemon Athletica ( LULU ), following guidance that completely derailed its growth narrative . Still, that hasn't stopped Morgan Stanley's Jay Sole and team from upgrading Under Armour's shares to Equal Weight from Underweight, as they argue that 40-times earnings is a "fair" valuation for the beaten down stock. They explain why: