UBS Reiterates Neutral Rating on Nike (NKE)

UBS analyst Jay Sole reiterated a Neutral rating and $73.00 price target on Nike (NYSE: NKE)

The analyst comments: "We expect slow growth with little margin rebound over the next couple years: The market is likely wondering how new CEO Elliott Hill will change Nike and put it back on a path to sustainable top-line growth at a healthy EBIT margin. To address this question, we hosted a call with an expert focusing on Nike's China business. Our conclusion, based on the expert's commentary and our own analysis, is Nike is not likely to experience a strong rebound in China any time soon. We anticipate negative revenue growth for the rest of the current fiscal year and flat-to-positive LSD% growth thereafter. Plus, we believe Nike's Greater China region EBIT margin will remain around the current low level. Our view, based on our conversations with investors, is the market has a moderately more bullish expectation. This is a reason we continue to rate Nike Neutral."

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 $71.34 yesterday.

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