LULU - Nike and peer falls as supply chain issues clip revenue outlook

Nike swings 4.61% lower in premarket action after supply chain problems led the company to lower revenue guidance. The issues largely tied to factory shutdown in Vietnam are expected to be persistent enough to lead to inventory shortages over the next few quarters. Wall Street analysts are slashing near-term estimates on Nike and dropping price targets. BTIG (Neutral rating) sees the mixed Nike report holding back shares in the near term. "While NKE innovation and overall demand trends are strong, the lack of visibility into when (duration) and how quickly (magnitude) the production in Vietnam can ramp back to full capacity will likely keep the stock under pressure and subject to multiple compression," warns analyst Camilo Lyon. Price target cuts are in from Morgan Stanley (Overweight, PT to $201 from $220), BMO Capital Markets (PT to $170 from $174) and Cowen (PT to $180 from $196). The general vibe from the

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Nike and peer falls as supply chain issues clip revenue outlook