Citi Downgrades Nike (NKE) to Neutral

Citi analyst Paul Lejuez downgraded Nike (NYSE: NKE) from Buy to Neutral with a price target of $140.00 (from $160.00).

The analyst comments "We are downgrading NKE from Buy to Neutral. While we believe in NKE’s long-term growth and margin expansion story, we see near-term pressure on sales/margin due to a slowdown in demand in China related to the Xinjiang cotton issue. Additionally, we believe a big step up in SG&A investments in F22 will drive lower margins relative to consensus. While we expect these pressures to be near-term in nature, we believe NKE is one of the few companies in our coverage that is facing potential pressures (as most others are likely to see sales/EPS upside over the next 12 months)."

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 $132.82 yesterday.

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