Benzinga | Jan 10, 2022 06:46AM EST

HSBC Downgrades This Footwear Giant- Read Why

* HSBC analyst Erwan Rambourg downgraded Nike Inc (NYSE:NKE) to Hold from Buy with a price target of $182, down from $184, suggesting a 16% upside.

* Rambourg said he saw a "quite balanced" risk/reward and a lack of near-term catalysts for the shares going forward.

* The analyst said production issues in Vietnam for Western sporting goods brands are probably in the "rearview mirror," but supply chain concerns for the sector aren't completely "out of the woods."

* Erwan believed Chinese demand will stay "lackluster" and noted that currency moves have "turned against the sector," adding that he saw "unsupportive" valuations at current share levels.

* Price Action: NKE shares closed lower by 2.53% at $156.97 on Friday.