Nike downgraded to Neutral from Overweight at Piper Sandler

Piper Sandler downgraded Nike (NKE) to Neutral from Overweight with a price target of $50, down from $60. The firm expects momentum in performance across the industry to continue, but says Nike is a quarter away from lapping big gains in running. Piper also worries that athleisure is “becoming too saturated across the industry, with frequency metrics at peakish levels.” Meanwhile, Nike does not have sufficient innovation to fill the volume void in its classics division, the analyst tells investors in a research note. The company’s valuation has reset but the shares are still not cheap, adds Piper.