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Nike Slides After UBS Cuts Price Target

Published 03/14/2022, 10:43 AM
Updated 03/14/2022, 10:44 AM
© Reuters.

By Sam Boughedda

Investing.com -- On Monday, the Nike, Inc. (NYSE:NKE) price target was trimmed to $173 from $192 by UBS analyst Jay Sole. 

The analyst, who kept a Buy rating on the stock, cut the price target ahead of the company's earnings release next week.

In a note, quoted by The Fly, Sole told investors he thinks the company's guidance and initial fiscal 2023 outlook "if it offers one, will disappoint the market."

He added that his analysis suggests Nike's business in China is not recovering as rapidly as hoped, while the market underestimates how much supply chain challenges, temporary store closures in Russia, higher oil prices, and a rising U.S. dollar will pressure the company's earnings outlook.

Sole sees Nike's fiscal 2023 earnings per share at $4.30, below the Street's $4.78 view.

Following the note, Nike shares fell 1.2%, adding to recent losses that have seen its stock decline more than 25% in 2022.

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