Nike price target lowered to $109 from $125 at Citi

Citi analyst Paul Lejuez lowered the firm’s price target on Nike to $109 from $125 and keeps a Neutral rating on the shares following the firm’s quarterly survey of 1,000 Chinese consumers and 1,600 North American consumers. The China survey suggests a sequential improvement in consumer sentiment, a slight uptick in promotions, and Nike “in good standing” with the Chinese consumer, the analyst tells investors in a research note. In North America, the survey suggests a stable macro environment versus March, with the consumer still feeling pressured by inflation, though the results indicate it may be getting “less bad,” adds the firm. Citi sees near-term downside in Nike shares if the company’s fiscal 2024 earnings per shared guidance is below $3.50. It reduced estimates to reflect lower gross margin as the firm expects incremental vendor support to key retail partners to partially offset freight and currency markdown tailwinds.