UPDATE: Sterne Agee Downgrades Rating on Nike to Neutral

In a company report published earlier today, Sterne Agee downgraded its rating on Nike, Inc.

from Buy to Neutral. Sterne Agee went on to say “We are planning FY13 GM to be down slightly which is below guidance as NKE has recently been unable to achieve its GM guidance despite the fact higher prices are sticky and production and transportation costs appear to be under control. Changes in currency rates will have a material impact on results. Our fiscal '14 estimates do not reflect any changes in currency. We believe that NKE is positioning itself well for the future (Brazil in '14 & '16). Despite the aforementioned growth plans, the lack of flow through concerns us. We would stay away from the stock for now.” Nike, Inc. closed yesterday at $96.89.