Wholesale Strategy Debate May Deter Incremental Buyers Despite Nike's Q4 Performance: Morgan Stanley
Portfolio Pulse from Shivani Kumaresan
Morgan Stanley analyst Alex Straton reiterated an Overweight rating on Nike Inc (NASDAQ:NKE) but lowered the price target from $130 to $127. Nike's Q4 revenue growth was 10% Y/Y to $12.82 billion, beating the analyst consensus. However, EPS of $0.66 missed the analyst consensus of $0.67. The analyst noted that the wholesale deceleration on the back of partnership news with Macy’s Inc (NYSE:M) & Designer Brands Inc (NYSE:DBI) was better than feared. NKE shares are trading lower by 2.69% at $110.32.
June 30, 2023 | 4:45 pm
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NEGATIVE IMPACT
Nike's Q4 revenue beat expectations but EPS missed. Morgan Stanley maintains Overweight rating but lowers price target. Shares are trading lower.
Nike's Q4 results were mixed with revenue beating expectations but EPS missing. This, along with the lowered price target from Morgan Stanley, is likely contributing to the stock trading lower.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Designer Brands' partnership with Nike was mentioned in relation to Nike's wholesale deceleration, which was better than feared.
Designer Brands was mentioned in the context of Nike's wholesale strategy. The impact on Designer Brands' stock is unclear based on this information.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Macy's partnership with Nike was mentioned in relation to Nike's wholesale deceleration, which was better than feared.
Macy's was mentioned in the context of Nike's wholesale strategy. The impact on Macy's stock is unclear based on this information.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50