Piper Jaffray Downgrades Nike (NKE) to Neutral

Piper Jaffray downgraded Nike (NYSE: NKE) from Overweight to Neutral with a price target of $58.00, saying competitive headwinds could leave the stock range bound.

Analyst Erinn Murphy commented, "We are downgrading our investment rating on NKE from OW to Neutral following our multi-market visits in Germany, UK & France this past week. While we believe in the brand longterm, the resurgence of adidas has taken a toll on Nike's growth rate in the region. We are also seeing other competition for the brand in Europe accelerate--from the likes of Puma, New Balance and surprisingly Reebok (Classics). Unlike other brands, markdowns of Nike product were consistent across our wholesale checks. Bottom line, these competitive pressures combined with a more muted innovation pipeline for Nike currently, could weigh on Nike for the next 6-12 month period. In terms of our model, our estimates and PT remain unchanged. We are stepping to the sidelines and expect NKE shares to be in a period of digestion until we see evidence of new platform innovation and earnings acceleration."

For an analyst ratings summary and ratings history on Nike click here. For more ratings news on Nike click here.

Shares of Nike closed at $57.72 yesterday.

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