Evercore ISI lowered the firm’s price target on Nike to $105 from $110 and keeps an Outperform rating on the shares. Nike’s fiscal Q1 update was “a little worse than we expected,” despite Q1 EPS that beat consensus by “a lot,” though thematically, the update “wasn’t much different than we expected,” the analyst tells investors. While Evercore is lowering its estimates slightly to mark to market for Nike’s comments on China and its retro pullback, the key themes in Q1 were “largely what we expected” and it still thinks the potential for multi-year success is “rising fast enough to look through another cut to near-term earnings that wasn’t as bad as the prevailing $2.50 scenario most bears feared,” the analyst added.
