Nike price target lowered to $110 from $120 at RBC Capital

RBC Capital lowered the firm’s price target on Nike to $110 from $120 but keeps an Outperform rating on the shares ahead of its Q3 results. The company’s revenue growth expectations for the quarter have sufficiently rebased to low single digit growth, which is not “demanding” and which minimizes risk of a FY24 guidance cut, the analyst tells investors in a research note. Competitive dynamics for Nike are intensifying and the company is transitioning product range rotation, though the firm remains confident in its execution, gross margin tailwinds and outsized marketing firepower, offering a relatively more defensive sporting goods option, RBC added.