Why Nike Shares Are Sinking Today
Portfolio Pulse from Lekha Gupta
Nike Inc (NYSE:NKE) shares dropped after Oppenheimer downgraded the stock to Perform from Outperform and cut the price target to $110 from $150. The downgrade is due to expectations of sluggish top-line trends, concerns over consumer demand, pauses in product innovation, and competitive pressures. Additionally, Nike plans to cut over 1,600 jobs to focus on key categories and aims for $2 billion in cost savings over three years. The analyst also lowered EPS estimates for Q3 and FY26.
February 16, 2024 | 5:37 pm
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Nike's stock downgraded by Oppenheimer to Perform, price target reduced to $110. Plans to cut 1,600 jobs as part of a $2 billion cost-saving strategy. Lowered EPS estimates for Q3 and FY26 amid sluggish sales and innovation concerns.
The downgrade by Oppenheimer reflects significant concerns about Nike's future performance, including sluggish sales trends and challenges in product innovation. The job cuts and cost-saving measures indicate a strategic shift but also underline the pressures the company is facing. These factors combined with lowered EPS estimates contribute to a negative short-term outlook for Nike's stock.
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