UBS drops price target for Nike amid China boycott

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UBS drops price target for Nike amid China boycott

Nike lowered its price target for UBS from $183 to $175.This follows a Chinese-led boycott of the brand for past statements criticizing China for Citigroup recently lowered its rating and price target on similar concerns.Like Citigroup, however, UBS is not lowering its rating of the sportsIn a recent note to investors, Nike says that it believes the troubles for UBS acrossOn 4-16 we held a conference call with two former Nike employees with deep experience sourcingThese experts believe Nike will suffer an impact on the business in the coming months.The reason for this is they think Nike will be ablable to craft a different marketing messageWe agree that the most likely outcome is that the issue fades away over the next month orPlus, we continue to believe that Nike's execution elsewhere remains very strong.We continue to believe that stock will outperform the next twelve months.UBS also noted that key catalysts are approaching, in particular how well the brand faresThe sixth month of the year is a major shopping month in China with ChilUBS believes that Nike sales will rebound during the month.Nike sales in June were 160% higher than sales in May.Our current forecast assumes a sales rebound by June.If sales don't improve, we may revisit our view on future.However, Rick Helfenbeinlfenbein, former CEO of American Apparel Footwear AssociationWith Nike in the news on a near-daily basis of late, some peopleThe pushback of China on Xinjiang puts at least one analyst on edge,In other words, we need your support.Meanwhile, small and medium-size retailers being pushed to the sidelines.All this being taken into consideration and the loss of the Kobe Bryant contract, there areReggie Wade is a writer for Yahoo Finance.Follow him on Twitter at ReggieWade.None of Nike explains that it has paid over $9 billion in taxes since 2016.None of NFL players team up with Goalsetter to teach kids financial literacy.None 'There is just so much energy around the sneaker market: Footlocker CEONo Cowen and other Western brands are likely to remain under a microscope in China: NikeNone of Nike's brand strength is now much higher, even with earnings miss: Analyst

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