Nike price target lowered to $110 from $120 at Jefferies

Jefferies lowered the firm’s price target on Nike to $110 from $120 and keeps a Hold rating on the shares. The company’s fiscal Q2 results reflect a slowing demand environment, leading Nike to focus on preserving and improving earnings, the analyst tells investors in a research note. While the “robust” $2B cost savings plan is welcome, the more subdued sales outlook is likely to be the focus, says the firm. As such, it believes the shares “will have difficulties breaking out from current levels.” Jefferies believes macroeconomic headwinds in the U.S. and China and ongoing pressure in the wholesale channel could temper Nike’s growth potential near-term.