High inventory and limited growth opportunities are likely to weigh on athletic gear seller Under Armour Inc. next year as difficult economic conditions continue, an analyst said Friday.

Jeff Mintz of Wedbush Morgan Securities downgraded Under Armour to "Hold" from "Buy" and reduced his share price target to $25 from $27. He said the Baltimore-based company is likely to be challenged in 2009 as men's apparel stores face ongoing weakness.

"In addition, although the company has reduced inventory growth over the last several quarters, inventory remains high, especially given the slower consumer environment," Mintz wrote in a note to clients.

The retail sector has been squeezed as consumers continue to tighten discretionary spending due to the housing downturn, eroding credit, rising food prices and unemployment concerns. Additionally, retailers have seen declining sales, which has prompted deeper discounts on merchandise as well as store closings and limited expansions.

To tha......