Citi ups Nike target but sees overhang on the shares

Citi analyst Paul Lejuez raised the firm’s price target on Nike to $125 from $115 and keeps a Neutral rating on the shares following the "big" Q3 beat. The analyst expects a combination of lower freight costs and product promotions will be a "nice tailwind" to gross margins in fiscal 2024. However, sales growth "will be tougher to come by," the analyst tells investors in a research note. The firm says Nike faces difficult comparisons in North America and Europe next year, which means it sales growth will be mostly reliant on China. It believes the uncertainty around the top line in fiscal 2024 will be an overhang on the stock, creating a balanced risk/reward on the shares.