Bloomberg

Investors don't seem surprised at what Baird and Co. analysts are pointing out about Nike Inc. (NKE) , but they're liking what the analysts say about Foot Locker Inc.  (FL) . 

After analysts at Baird and Co. downgraded Nike stock to neutral from outperform, Nike shares fell 0.4% at the close of trading Wednesday. Analysts upgraded Foot Locker, a seller Nike leans on heavily, to outperform from neutral. Foot Locker shares lost 1/1% to $56.17 on the day. 

Baird moved its price target on Nike to $82 a share from $87 a share, still representing almost 7% upside. While still somewhat positive on the stock, Baird analysts warn Nike's earnings multiple is unsustainable, with a trailing one-year price-to-earnings ratio of 58. Nike is expanding internationally, and shows strong overseas sales in its December earnings report. Simply put, Nike's business isn't necessarily under a particularly harsh threat, but its valuation may be overstretched. 

As for Foot Locker, analysts raised their price target to $65 from $60 a share. The new price target represents roughly 14.5% upside. Analysts cited strong Nike same-store sales as an indicator that the company can continue to "inflect positively," further evidence that Nike isn't about to take any kind of hit to sales, but that it may be overvalued. 

Nike shares are up 19% in the past year, smoking the broader market, while Foot Locker is up 23% in the same span.