Nike: downgrades 'buy' rating.
(CercleFinance.com) - Broker Jefferies has downgraded its rating on Nike from "buy" to "hold" and has cut its target price for the stock from 75 dollars to 60 dollars, highlighting fiercer competition for the US sports gear giant.
It adds that the stock is trading at a high valuation.
The broker says that "Nike remains a top brand in a solid industry, but our mosaic of five data sources suggests growth and margins are at risk ahead."
"With expectations for less robust fundamentals, Nike's premium valuation conflicts with intensifying US competition unfolding," it continues.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
It adds that the stock is trading at a high valuation.
The broker says that "Nike remains a top brand in a solid industry, but our mosaic of five data sources suggests growth and margins are at risk ahead."
"With expectations for less robust fundamentals, Nike's premium valuation conflicts with intensifying US competition unfolding," it continues.
Copyright (c) 2017 CercleFinance.com. All rights reserved.