"Goldman Sachs and JPMorgan both downgraded Nike to Neutral with a $52 price target, while BofA moved to Neutral from Buy with a $55 target. The common thread: the turnaround timeline has been extended materially."
"China is the sharpest pain point. Q4 Greater China revenues are expected to decline 20%, extending a streak that has now run six consecutive quarters. Local brands including Anta and Li Ning are gaining share, and cooling consumer spending is compounding the pressure."
"The stock sits well below both its 50-day moving average of $59.93 and 200-day moving average of $66.70. The forward P/E of 44x implies significant earnings recovery is already priced in, yet quarterly earnings growth is running at -32% year-over-year."
Nike's stock has fallen 14.44% following fiscal Q3 results, with analysts downgrading the stock due to a prolonged recovery in China. Year-to-date, shares are down 28.54%. Goldman Sachs and JPMorgan downgraded Nike to Neutral, citing extended turnaround timelines. Q4 Greater China revenues are expected to decline 20%, with local brands gaining market share. Despite a revenue of $11.28B, net income fell 35% year-over-year. The stock is significantly below its moving averages, indicating challenges ahead.
Read at 24/7 Wall St.
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