Telsey Advisory downgraded Nike (NKE) to Market Perform from Outperform with a price target of $80, down from $93. The firm came away from Nike’s fiscal Q2 earnings call, the first one led by new CEO Elliott Hill, still seeing a path for a turnaround at the company, but one that will take longer to execute, require greater investments in areas like brand marketing, and result in lower sales and profitability over the next 12 months. In addition, Telsey lacks clarity around the length of time it will take to clean up inventory, introduce significant product newness, rebuild wholesale partnerships, and elevate Nike digital by reducing promotions in order to return Nike to growth.
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