Morgan Stanley reports that Under Armour has announced a leadership change, which is another blow for investors who are hoping for a turnaround. Wednesday’s announcement by CEO Patrik Frisk was that he would be stepping down effective June 1st. Premarket trading saw shares fall 5%. Kimberly Greenberger from Morgan Stanley responded to the downgrading of Under Armour’s weight from overweight. Frisk’s response “signals an apparent lack of confidence in the company’s rebound plan.” “Today’s CEO departure announcement, on top of pre-Covid performance challenges & last quarter’s miss & FY guide below, impairs our confidence in the turnaround,” Greenberger wrote. Under Armour shares have been reduced in half by the time the year began, and the stock of Under Armour has fallen in 2022. Morgan Stanley suggested that Under Armour is still overvalued relative its peers. “It’s tough to make a valuation re-rating argument from here unless performance materially accelerates, which we view as highly uncertain against the volatile macro & management turnover,” Greenberger wrote. Morgan Stanley has reduced its price target from $14 to $11 per shares. Stock closed Wednesday at $10.53 — CNBC’s Michael Bloom contributed to this report.