Analysts at Citigroup see a downside risk to Nike shares after retailer Foot Locker posted disappointing quarterly results. The firm reiterated a neutral rating on Nike stock on Monday with a price target of $125 per share. That still represents an upside of about 9% compared to Friday’s close of $114.76 per share. Nike stock is down about 2% since the start of the year, and shares fell 1.5% in premarket trading on Monday. NKE YTD Mountain Nike Stock. Citi analyst Paul Lejuez said concerns over inventory at footwear retailers on lower consumer spending could prompt Nike to issue gross margin forward guidance below Wall Street expectations. “While NKE has easy GM comparisons (following an estimated 250bps decline in F23), we believe there is a risk they will guide to GM expansion below consensus, which will be beneficial for the stock when it reports in late June.” will be negative (although) we believe these concerns may put pressure on the stock in the near term as well)” Lejuez said. Citi forecasts full-year gross margin growth of 280 basis points in 2023, matching Wall Street’s expectations. City neutralized Foot Locker on Monday, citing “economic sensitivity” [Foot Locker’s] customer base” was hit by the company’s weak results on Friday. The firm cut its price target on Foot Locker stock from $48 to $30 per share. FL YTD Mountain Foot Locker stock. – CNBC’s Michael Bloom contributed to this report Gave.
