Is Nike's Gross Margin Silver Lining Enough? BofA Analyst Forecasts 15% EPS Growth But Remains Neutral
Portfolio Pulse from Shivani Kumaresan
BofA Securities analyst Lorraine Hutchinson has reiterated a Neutral rating for Nike Inc (NYSE:NKE) and lowered the price target from $125 to $110. The analyst forecasts a 15% EPS growth but remains cautious due to uncertainty in China and the challenging U.S. wholesale environment. Nike's sportswear and footwear sales on Taobao and Tmall increased 8% in 1Q24. However, the analyst lowered Greater China constant currency sales forecast in 1Q to 10% due to volatile macroeconomic environment.
September 20, 2023 | 6:05 pm
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Nike's Neutral rating has been reiterated by BofA Securities analyst, but the price target has been lowered from $125 to $110. The analyst forecasts a 15% EPS growth but remains cautious due to uncertainty in China and the challenging U.S. wholesale environment.
The analyst's neutral rating and lowered price target indicate a cautious outlook for Nike. The forecasted 15% EPS growth is positive, but the uncertainty in China and challenging U.S. wholesale environment could offset potential gains. This could lead to a neutral or slightly negative short-term impact on Nike's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100