Nike: UBS trims price target by one dollar.
(CercleFinance.com) - UBS cut on Tuesday its target price on Nike shares by one dollar, from 63 dollars to 62 dollars, before the world's largest sportswear maker releases its 2017 fourth-quarter results on Thursday.
The broker - which maintains a "buy" rating on the shares - says the report will formalise a long-anticipated guide below consensus for the next 2018 fiscal year.
Despite this, UBS still thinks that the stock will perform well over the next year.
"Over the next six months, we think the market will shift focus to fiscal year 2019," the broker explains in a research note sent to clients.
"With a more realistic revenue outlook, FX headwinds diminishing, and underlying Ebit margins likely at a trough in fiscal year 2018 — we think consensus EPS revisions are more likely to turn positive," it says.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker - which maintains a "buy" rating on the shares - says the report will formalise a long-anticipated guide below consensus for the next 2018 fiscal year.
Despite this, UBS still thinks that the stock will perform well over the next year.
"Over the next six months, we think the market will shift focus to fiscal year 2019," the broker explains in a research note sent to clients.
"With a more realistic revenue outlook, FX headwinds diminishing, and underlying Ebit margins likely at a trough in fiscal year 2018 — we think consensus EPS revisions are more likely to turn positive," it says.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.