UPDATE: Citigroup Reduces PT to $98 on Nike on China Caution, Slowdown in Futures
Citigroup reiterates its Buy rating on Nike (NYSE: NKE) but reduces its price target from $123 to $98.
Citigroup notes, "There is no question Nike's earnings and subsequent guidance for FY13 was disappointing. We saw futures slow (most notably China), margins under pressure (again) and guidance for FY13 that was lower than consensus. However, we think there are still reasons to own the stock over the next 12 months: 1) revenues continue to be strong (high single digits) on a constant currency basis; 2) Nike reiterated its aggressive 5-year revenue target of $28-30 billion revenue growth by 2015; 3) we expect continued aggressive share buy backs with the possibility of a new share repurchase program announced next year."
NKE closed at $84.75 on Thursday.
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