Telsey Advisory analyst Joe Feldman maintains $Nike (NKE.US)$ with a buy rating, and adjusts the target price from $100 to $96.
According to TipRanks data, the analyst has a success rate of 58.8% and a total average return of 9.0% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Nike (NKE.US)$'s main analysts recently are as follows:
Nike's Q1 report suggests that the company's recovery will be prolonged, akin to a marathon rather than a sprint. The anticipated revision of fiscal 2025 guidance, with potential sales reductions in the second half reaching high single digits from previously flat projections, underscores the extended journey and represents yet another adjustment to expectations. The current footwear market demands increased creativity to sustain sales, and there's a sentiment that Nike has seen a decline in its storytelling and innovation. This outlook is coupled with a positive perspective on the capabilities of the incoming CEO, Elliott Hill.
The company's Q1 report indicated a 10% decline in revenues year-over-year, with below-plan traffic and unit sales being partially offset by higher selling prices. It has been suggested that the company's turnaround timeline has been extended.
The recent performance report from Nike was anticipated to be lackluster. It is believed that a favorable buying opportunity may arise once there's visibility towards a recovery to robust and enduring growth in sales and earnings per share. Currently, the risks of downside are notable, yet there's also a higher potential for upside, creating a balanced risk/reward scenario. Sales growth may persist in being underwhelming due to challenges with core product styles and market conditions in China. Furthermore, Nike's profit margins could face additional strain from elevated inventory levels.
Note:
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