Nike, once considered a brand that could withstand a broadly struggling retail landscape, is now a stock investors should shy away from in the short term.
That's the message from David Seaburg, Cowen & Co.'s head of sales and trading.
"I think Nike's under the microscope, and obviously we're seeing what's happening with retail across the board. Nike was immune to that for a period of time, with a strong brand, but they've got competition now, and I think Adidas is really going to knock them out here," Seaburg said Monday on CNBC's "Trading Nation."
He added: "It's a fine stock, and I think over the long term they'll figure things out. But short term, there are some issues."
Additionally, Adidas appears to be taking market share from Nike in North America, Seaburg said, forecasting shares of Nike could trade down to the $47 to $48 range, implying between about 9 and 11 percent of downside from current levels. Adidas has risen a little more than 5 percent this year as Nike has advanced nearly 4 percent in the same time.
"I wouldn't be jumping in here," he said of Nike, but added: "It's not a name that I'm saying you should be out there aggressively shorting." Still, he said, Adidas is a better pick than Nike.
On the other hand, Washington Crossing Advisors portfolio manager Chad Morganlander just purchased Nike stock, as he sees long-term growth potential. The company could see a soft quarter when it reports earnings later this month, but he thinks that's too shortsighted.
"The key driver of growth is going to be the emerging markets," Morganlander said, adding that he sees substantial growth potential there over the next five to 10 years.
Morganlander added that the company is "virtually debt-free," and investors should expect to see an increasing dividend in the longer term. His bullish thesis lies largely in what he says is its global growth potential.
Analysts, on average, give Nike a bullish price target of $60.91, according to FactSet data. In a recent note, Piper Jaffray senior research analyst Erinn Murphy lowered her price target. She said the "brand's innovation pipeline has paused" and competition remains "fierce."
Nike reports quarterly earnings on June 29, and most analysts are expecting earnings of 50 cents per share.