Nike (NYSE: NKE) stock has been given a Neutral rating by UBS, with a price target of $73.00. Concerns have been raised by analysts about potential near-term earnings risks due to inventory management and product pipeline challenges.

The analysts believe that Nike may have underestimated the time and costs required to normalize its inventory levels, as well as the slower-than-expected replenishment of its new product pipeline. They also mentioned that Nike is currently in the early stages of an 18-24 month cycle focused on new product innovation, which is crucial for the company's performance.

Despite these challenges, UBS remains optimistic about Nike's prospects, citing the strong brand equity of both Nike and Jordan as a significant asset that could help the company recover. UBS Evidence Lab's global athletic wear survey supports this optimism, showing that consumer perceptions of the Nike and Jordan brands remain strong, indicating that Nike has the potential to effectively navigate the current challenges it faces.