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4 big analyst cuts: Nike slashed to Sell, Foot Locker cut at 2 firms after Q1 miss

Here is your Pro Recap of the biggest analyst cuts you may have missed today: downgrades for Nike, Foot Locker, Canadian National Railway, and Catalent.

InvestingPro subscribers got these headlines in real time. Start your 7-day free trial.

Nike cut to Sell: 'not as good as it was 5 years ago'

Nike (NYSE:NKE) shares fell more than 1% pre-market today after Williams Trading downgraded the company to Sell from Hold with a price target of $95.00.

According to the firm, the downgrade move was predicated on Nike’s U.S. business, which it says will remain "challenged" through at least the first half of fiscal 2024, and due to a lack of new compelling products, consumers may be becoming trained to look for promotions.

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The firm added, "Nike has lost many senior people throughout the entire company with, now necessary, historical institutional knowledge of Nike. As such, Nike's game today, is not as good as it was 5 years ago."

Nike performed exceptionally well in 2021 and 2022 by enhancing its direct-to-consumer and digital capabilities. However, it appeared unprepared to adjust to a return to in-person shopping.

Foot Locker downgraded at two firms after Q1 miss & guidance cut

Foot Locker (NYSE:FL) received two downgrades after reporting a Q1 miss and cutting its full-year outlook, which resulted in a share price drop of more than 27% on Friday.

As reported in real time on InvestingPro, Citi cut the company to Neutral from Buy and cut its price target to $30.00 from $48.00, noting that while 2023 guidance was lowered significantly, they don’t view it as fully de-risked.

Meanwhile, Williams Trading downgraded the company to Sell from Hold with a price target of $25.00. According to the firm, the guidance cut, which builds in some improvements from current trends late this year, will likely still prove too aggressive, especially when it comes to gross margin, given bloated inventory levels.


2 more downgrades

Citi downgraded Canadian National Railway (NYSE:CNI) to Neutral from Buy and cut the price target to $125.00 from $139.00.

JPMorgan downgraded Catalent (NYSE:CTLT) to Neutral from Overweight and cut its price target to $45.00 from $90.00. Shares fell more than 2% pre-market today.

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