Nike price target lowered to $128 from $135 at Telsey Advisory

Telsey Advisory analyst Cristina Fernandez lowered the firm’s price target on Nike to $128 from $135 and keeps an Outperform rating on the shares in a preview of the company’s upcoming fiscal Q1 report. Most datapoints from the Q2 earnings cycle were “incrementally negative for the sporting goods industry,” particularly in the U.S., says the analyst, who expects the focus on the call to be on demand trends by U.S. wholesale accounts the pace and sustainability of the recovery in China, inventory levels and promotional activity and updated FY24 guidance. The firm expects the Q1 report to “provide reassurance” around the strength of the Nike and Jordan brands, the outperformance of DTC, and “abating profit pressures,” the analyst added.