Nike Stock Turnaround Path Clear, Analyst Says: ‘Getting Back To Winning Takes Time’
Nike Inc (NYSE:NKE) analysts are highlighting the company’s new turnaround plan under CEO Elliott Hill with a focus on inventory, product innovation and wholesale partnerships being key takeaways Friday following the company’s second-quarter financial report.
The Nike Analysts: Telsey analyst Cristina Fernández downgraded Nike shares from Outperform to Market Perform and lowered the price target from $93 to $80.
JPMorgan analyst Matthew Boss maintained a Neutral rating and a price target of $73.
Goldman Sachs analyst Brooke Roach reiterated a Buy rating and lowered the price target from $97 to $91.
Needham analyst Tom Nikic reiterated a Buy rating and a price target of $84.
Truist analyst Joseph Civello reiterated a Buy rating and lowered the price target from $97 to $90.
Piper Sandler analyst Anna Andreeva maintained a Neutral rating and a price target of $72.
Bank of America analyst Lorraine Hutchinson reiterated a Buy rating and lowered the price target from $95 to $90.
Read Also: Nike’s New CEO Blames Promotions For Declining Profits, Says Turnaround Efforts May Hurt As Company Moves To Clear Excess Inventory: ‘We Lost Our Obsession With Sport’
Telsey on Nike: A turnaround path for Nike is in place, but may take longer than expected and could be costly, Fernández said in a new investor note.
The analyst said the turnaround path could require larger investments in brand marketing and hurt sales and profitability over the next year.
“In addition, we lack clarity around the length of time it will take to clean up inventory, introduce significant product newness, rebuild wholesale partnerships, and elevate Nike digital by reducing promotions in order to return Nike to growth,” Fernández said.
Fernandez said there is “some early progress” with marketing and products, but things remain in the early stages.
JPMorgan …
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