HSBC downgrades Nike (NYSE:NKE) to a Hold rating after having the athletic apparel stock slotted at Buy.
The firm points to ongoing production issues and slowing demand in China as overhangs in the near term. No significant short-term catalysts for share price boosts are seen.
Analyst Erwan Rambourg: "Inventory shortages created during July-September 2021 lockdowns and in the following months (with only a gradual reopening) should continue to impact the Western sporting goods players’ top-line for at least the first few months of 2022e, due to higher lead times for goods to reach shelves."
Shares of Nike (NKE) are down 2.55% premarket to $152.78.