Under Armour shares falling today after Morgan Stanley downgraded the name to "sell," and lowered its price target to $62 from $103. The firm cited falling market share and declining average selling price in footwear as reasons for the downgrade. The "Halftime Report" traders discussed the bold call and their picks for the best name in the sector.
Pete Najarian focuses on the lost market share in women's apparel. He thinks other names, such as Lululemon, have been more successful in targeting women.
Joe Terranova is a long-term bull on the name. Terranova argues the stock will be up again in 18-36 months, and therefore thinks Morgan Stanley's note is taking a trading rather than investing look at the stock. He believes near-term headwinds should not be overblown since Under Armour has strong international growth potential.
Josh Brown does not think this is a long-term bet, but believes there is some money to be made in the short-term. He points out that it has an RSI below 20. The last time it had an RSI of 30, the stock went up 30 points immediately after. Based on these past moves, he thinks this is a "great" trade for a short-term perspective.