STOCKS | Citi Cuts Topsports Price Target to HK$1.7 and Lowers Earnings Forecasts

According to Jin10, Citi said Nike's adjustment to its China distribution strategy from January 2027 is expected to weigh on Topsports' business outlook for fiscal 2028, which ends in February 2028. The bank cut Topsports' fiscal 2027 to 2029 net profit forecasts by 2%, 19%, and 18%, and reduced its sales forecasts by 1%, 5%, and 5%. It lowered the price target from HK$1.91 to HK$1.7 based on an unchanged 11 times target calendar 2027 forecast price-to-earnings ratio, while keeping a Buy rating. Citi also kept its preference order for China's sportswear sector unchanged: Anta, Li Ning, and Topsports, all with Buy ratings.