On Oct 02, major Wall Street analysts update their ratings for $Nike (NKE.US)$, with price targets ranging from $89 to $120.
BofA Securities analyst Lorraine Hutchinson maintains with a buy rating, and adjusts the target price from $104 to $100.
Deutsche Bank analyst Krisztina Katai maintains with a buy rating, and maintains the target price at $92.
Wells Fargo analyst Ike Boruchow maintains with a buy rating, and maintains the target price at $95.
Evercore analyst Michael Binetti maintains with a buy rating, and adjusts the target price from $110 to $105.
Guggenheim analyst Robert Drbul maintains with a buy rating, and adjusts the target price from $115 to $110.
Furthermore, according to the comprehensive report, the opinions of $Nike (NKE.US)$'s main analysts recently are as follows:
The latest quarterly report from Nike has solidified the perspective that the company's recovery will be prolonged, akin to a marathon rather than a swift race. The updated fiscal 2025 guidance suggests a potential decline in sales for the second half of the year by a high-single-digit percentage, differing from earlier predictions which indicated a stable outlook. This adjustment signifies a lengthier journey toward growth and sets a new baseline for future expectations. The current market demands unique creativity within the footwear industry to maintain sales, an area where Nike's innovation and narrative drive have seen a diminishing impact. There is a sense of optimism for the direction the company will take under the leadership of the incoming CEO Elliott Hill.
The company's Q1 report indicated a 10% decline in revenues year-over-year, attributed to underwhelming traffic and unit sales, which were somewhat mitigated by increased selling prices. The turnaround timeline for Nike has been perceived to be prolonged.
The recent lackluster financial report from Nike was anticipated and the viewpoint is that a more opportune moment for investment may arise once a clear trajectory towards robust and enduring growth in sales and earnings becomes evident. Nonetheless, at present, the possibility of continued downturns is considerable, with an equally heightened potential for gains, leading to a balanced risk/reward scenario. It's suggested that Nike's sales growth may persist in underperforming, particularly due to a slump in its primary product lines and market challenges in China. Additionally, there's concern that Nike's gross margin might face greater strain than foreseen as a consequence of elevated inventory levels.
Following Nike's Q1 report where earnings per share surpassed forecasts and sales saw a 10% decline, matching projections, it is believed that the upcoming leadership change with Hill's appointment as CEO later this month mitigates the risk associated with potential sales shortfalls. This change provides Hill with the leeway to execute his strategic plans.
The company's fiscal Q1 results fell short of sales expectations due to diminishing trends in both direct-to-consumer and wholesale channels. This was somewhat offset by better-than-anticipated gross margins and lower spending, which contributed to earnings surpassing estimates. However, the performance of the quarter was considered of 'low-quality' as inventory levels are now exceeding the pace of sales growth, and the guidance for Q2 was below the consensus view.
Here are the latest investment ratings and price targets for $Nike (NKE.US)$ from 11 analysts:
Note:
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