What's In Store For Nike In Q3 Earnings? Analyst Sees Revenue Decline In North America & EMEA
Portfolio Pulse from Nabaparna Bhattacharya
RBC Capital Markets analyst Piral Dadhania has reiterated an Outperform rating on Nike, Inc. (NYSE:NKE) but lowered the price forecast from $120 to $110 ahead of Nike's Q3 fiscal 2024 earnings release on March 21, 2024. The analyst expects low single-digit revenue growth, a gross profit margin of 45%, and diluted EPS of $0.72. The forecast includes stable inventories and a free cash flow of $1.8 billion, with the strongest growth anticipated in APLA and Greater China, while expecting flat or negative growth in North America and EMEA.
March 12, 2024 | 6:21 pm
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RBC Capital Markets analyst lowers Nike's price target to $110 from $120, expecting low single-digit revenue growth for Q3 fiscal 2024, with a focus on performance in APLA and Greater China.
The adjustment in Nike's price target by RBC Capital Markets reflects a cautious but still positive outlook on the company's performance, particularly in the APLA and Greater China regions. The expectation of low single-digit growth suggests a stable but not overly optimistic view, which could lead to a neutral short-term impact on the stock price. The focus on specific regions indicates where growth is anticipated, potentially offsetting weaker performance in North America and EMEA.
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