Nike Outlook by BofA Securities 
<p>Adidas reported mixed Q3 results and provided an incrementally negative update on the supply chain and pointed to a larger supply chain hit to sales for the next two quarters. Production capacity in Vietnam continues to ramp, albeit at a slightly slower pace than expected. Analysts at BofA Securities provided their view on <a href='https://financialmodelingprep.com/financial-summary/NIKE'>NIKE, Inc. (NYSE:NKE) </a>following Adidas’ earnings report on two key debate topics, which are the global sportswear supply chain and the recovery in China.</p>
<p>The analysts mentioned that not much has changed since NIKE’s Q1 earnings call in September and they believe the current supply chain headwinds are appropriately reflected in management’s reduced 2022 guidance. </p>
<p>While trends have improved in September and October, the analysts believe the situation remains volatile and expect the company to continue to allocate resources to China to help aid the recovery, including adding more newness to the local Chinese assortment (similar to Adidas). China will remain a key strategic growth avenue for NIKE but the lack of visibility on how the demand picture is unfolding prevents the analysts from taking a more bullish stance. They reiterated their neutral rating on the company’s shares and increased their price target to $170 from $160.</p>

NYSE:NKE