Nike: stock hit after growth forecasts reduced
(CercleFinance.com) - The Nike stock closed down over 6% on Friday after the group unveiled its Q1 2012 results.
The company said that it is looking for a way to improve its performance over the coming months, although so far added that it has been unable to find a way to do so.
Despite currently strong demand, the sporting goods maker was forced to lower its growth forecast for the current year, solely due to supply chain issues, the broker said.
In its comments, analysts say that Nike has lost 10 weeks of production due to factory closures in Vietnam with transport times to the US doubling from 40 to 80 days.
As such, the broker prefers to maintain a "neutral" rating on the stock, believing that its risk/reward profile is well balanced at current levels, pending better visibility on logistics issues and on the prospect of a recovery in business in China.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The company said that it is looking for a way to improve its performance over the coming months, although so far added that it has been unable to find a way to do so.
Despite currently strong demand, the sporting goods maker was forced to lower its growth forecast for the current year, solely due to supply chain issues, the broker said.
In its comments, analysts say that Nike has lost 10 weeks of production due to factory closures in Vietnam with transport times to the US doubling from 40 to 80 days.
As such, the broker prefers to maintain a "neutral" rating on the stock, believing that its risk/reward profile is well balanced at current levels, pending better visibility on logistics issues and on the prospect of a recovery in business in China.
Copyright (c) 2021 CercleFinance.com. All rights reserved.