Deutsche Bank downgraded Under Armour, Inc. (NYSE: UA) from Buy to Hold with a price target of $32.00 (from $50.00). The change follows updated long term guidance.

"After providing 3Y CAGR plans at its Sept. ‘15 Investor Day of 25% revs./23% EBIT, mgmt. yesterday reduced 2017/18 rev. growth to ‘low 20%’, and surprisingly, EBIT growth to ‘mid-teen’. While ~22% rev. growth is robust, relative to our forecast (we already had flat GM) mgmt. is taking a more aggressive pace with investments. Candidly, none of the expense initiatives about which mgmt. spoke were a surprise; but they are being implemented faster than expected. In our view, this changes the out-year ~15% l-t OM glidepath from ‘relatively stable’ to down meaningfully (-110bp through 2018 to 7.9%) before reverting higher. With UA trading at 48x ’17 EPS, this newlyintroduced ‘V-shaped’ profit profile limits outsized multiples and puts investors at bay for EPS reacceleration. D/G balances UA’s now slower medium term profit trajectory and muted multiple expansion with strong global share gains," said analyst Dave Weiner.

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Shares of Under Armour, Inc. closed at $32.89 yesterday.