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.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100