Nike Inc. 'Free' model sneakers sit on display in the window of the Nike Store.
Jason Alden | Bloomberg | Getty Images
UBS reduced its price target for Nike by $6, citing lower earnings due to increased promotional discounting. The firm reiterated its buy rating on the company based on positive long-term fundamentals.
"We're lowering our FY17E EPS based on ongoing heavy markdowns and our view that F2Q revs & GM's [gross margins] are likely trending below plan," analyst Michael Binetti wrote in a note to clients Monday.
"We believe NKE's current headwinds are temporary, but a re-acceleration will likely require reinvestment in more impactful innovation, a price/value equation reset, new pinnacle brand expressions (like the new Soho store) and more marketing."
