Nike (NKE) PT Lowered to $50 at Piper Jaffray, Negatively Revises EPS Estimate

Piper Jaffray lowered its price target on Nike (NYSE: NKE) to $50.00 (from $53.00) while maintaining a Neutral rating.

Analyst Erinn Murphy came away from the Q4 report unimpressed citing a decline in demand creation coupled with an expanding spread on inventory versus sales. The analyst also notes that EMEA deceleration in sales was greater than anticipated and the outlook for gross margins is dampened by domestic promotional backdrop.

Murphy rolls out the valuation from FY 2018 to 2019 and trims the multiple from 22x EPS to 21x citing the increased time horizon.

FY 2018 EPS estimate falls from $2.40 to $2.25 and FY 2019 EPS estimate falls from $2.60 to $2.40.

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