Nike has 10 challenges to overcome, including competition “” not to mention end of Kobe Bryant contract

Nike has 10 challenges to overcome, including competition “” not to mention end of Kobe Bryant contract

Nike Inc. is facing 10 challenges in the year ahead, according to a downgrade of the athletic giant's shares published by Citi analysts, among them competition in the active category, which is heating up due to new entrants, and the possibility of increased markdowns.

Citi downgraded Nike's stock rating to neutral from buy and cut its price target to $140 from $160.

"While it is hard not to like this one-of-a-kind brand in the attractive active category at a time the consumer backdrop is strong, there are some items near-term specific to Nike that we believe create a more balanced risk/reward over the next twelve months,“ analysts said.

Nike

NKE, -4.26%

is facing a number of problems in China, according to the note, including boycotts due to controversy about Xinjiang cotton, which analysts say may be contributing to a sales decline in the region; the possibility of markdowns due to those Chinese sales declines; and the chance that Nike will spend more money to drive greater demand in China.

See: Nike launches refurbished sneaker program

Nike highlighted growth in China in its fiscal second-quarter earnings.

"[N]ear-term headwinds in China (Xinjiang cotton)