Nike's (NKE) turnaround is "taking longer than expected" as its fiscal Q3 global trends appeared soft and Q4 outlook unlikely to signal a "meaningful" sequential improvement in sales growth, UBS Securities said in a Thursday note.

The company is set to release its fiscal Q3 results on March 31 and UBS said its checks indicate that Nike saw weak direct-to-consumer sales in the US and Europe. UBS estimates about a mid-single digit decline in US direct-to-consumer sales and for sales trends in Europe to miss the Street's 2.9% growth forecast.

UBS also noted investor concerns over Nike's turnaround for its business in China and the Converse brand.

The investment firm said it expects the company's fiscal Q3 adjusted earnings per share to be "roughly" in line with Street consensus and Q4 EPS forecast to be below expectations.

UBS lowered its price target on Nike to $58 from $62, and maintained neutral rating.

Price: 52.96, Change: -0.51, Percent Change: -0.95