Skechers downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Skechers (SKX) to Equal Weight from Overweight with a price target of $63, down from $73, after the company agreed to be taken private for $63 per share. The firm cites the 3G acquisition news for the downgrade and believes the private transition makes sense. While the $63 offer price may initially strike investors as low relative to recent levels, it is fair considering the current industry dynamics, the analyst tells investors in a research note. Morgan Stanley sees few alternative public buyers.