Cowen downgrades Nike on market losses to Under Armour and Adidas

An employee carries Nike sneakers for a customer at a Dick's Sporting Goods store in Sterling Heights, Michigan.
Sean Proctor | Bloomberg | Getty Images

Cowen lowered its rating for Nike shares to market perform from outperform, citing rising competitive pressure and discounting at retail stores.

"NKE's share loss to Under Armour and Adidas could accelerate, while promotions in N. America and international inventory appear elevated," analyst John Kernan wrote in a note to clients Tuesday.

"We see a high probability that NKE reduces second half FY17 guidance or guides Q3 below consensus, and we view sell-side estimates (75% net buy rated) as too high into 2018."