Nike downgraded on increased competition and growth risk


Nike Inc.

NKE, -2.93%

was downgraded to hold from buy at Jefferies on concern that increased competition in the U.S. is putting growth and margins at risk. Jefferies cut its price target to $60 from $75. Jefferies analysts led by Randal Konik cite market data that shows increased website visits, market share and brand share for top running items going to Adidas AG

ADS, -0.55%

Analysts also say there are a rising number of Adidas mentions on Finish Line Inc.

FINL, -7.18%

and Foot Locker Inc.

FL, -3.03%

earnings calls. “[W]e believe secular industry tailwinds still exist, but Adidas brand heat dilutes them, and Nike innovation is strong, but there’s less buzz around its near-term pipeline,” the note said. Nike shares are down 2.4% in Monday trading, but up 5.7% for the year so far. The S&P 500 index

SPX, -0.15%

is up 8.4% for 2017 so far.