Skechers (SKX) falls after Morgan Stanley downgrade, price target cut

Shares of Skechers dropped 8% on Wednesday after Morgan Stanley downgraded the stock to "equal-weight," reduced its full-year earnings estimate, and slashed the company's price target.

  

In a note titled, "Three Stripes, You're Out; Downgrading to EW," Morgan Stanley said that it believes the year-to-date slowdown of Skechers has been due to "longer-lasting issues" and not "temporary macro factors."

With Wednesday's decline, the stock has fallen nearly 30 percent so far in 2016, and nearly 55 percent in the past year.

The firm cut its price target to $25 from $41.