Nike's (NYSE:NKE) price target was cut to $109 from $125 by Citi analysts, who maintained a Neutral rating on the stock in a note Tuesday.
In their Q23 preview note, analysts stated that crosscurrents leave uncertainty high, and the firm remains cautious ahead of Nike 's full-year 2024 guidance.
"We anticipate NKE's 4Q23 results (AMC 6/29) will beat consensus (our est $0.72 vs. cons $0.67) based on stronger sales (+4% vs cons +3%) driven by above cons Greater China sales, partially offset by weaker than cons NAM/EMEA sales," wrote analysts.
"We are lowering our F24E from $4.00 to $3.74 based on lower GM as we anticipate incremental vendor support to key retail partners will partially offset freight/FX/markdown tailwinds in GM," they added. "We are below cons on F24 total sales at +2% (vs cons +7%), driven by weaker NAM sales. We anticipate mgmt guiding F24 EPS to ~$3.50 at the mid-point of the range based on +LSD sales growth."
The analysts concluded that with "many crosscurrents" impacting NKE's business, including NAM consumer weakness, excess retailer inventory, and the China recovery, they see the uncertainty as high into the print, and keep their negative catalyst watch from 5/22/23 in place.
In addition, Citi believes that there is near-term downside in NKE if F24 guidance is below ~$3.50.