Jefferies analyst Randal Konik cut Nike Inc.  (NKE) - Get NIKE, Inc. (NKE) Report to "hold" from "buy" Monday, Aug. 21,  as competition from Adidas AG  (ADDYY) intensifies.

Konik's case revolves around data sources suggesting Nike could lose out to other industry competitors, analysis of web traffic on Nike and Adidas sites, secondary sneaker market data, online brand share of top-selling running shoe models and mentions of Adidas on Foot Locker Inc.  (FL) - Get Foot Locker, Inc. Report and Finish Line Inc.  (FINL) earnings conference calls. The combined data suggested "Adidas' brand heat is spreading," Konik said.

Nike's growth and margins could be at risk moving ahead as elevated selling, general and administrative expenses occupy near-term funds and marketing campaigns become more important for Nike's ability to "defend its turf" from Adidas.

Konik slashed his price target for Nike to $60 from $75, which still implies about a 9% upside from Nike's closing price on Friday, Aug. 18. Shares fell 2.5% in morning trading on Monday to $53.55.

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