Nike: stock falls with Barclays' downgrade
(CercleFinance.com) - On Tuesday Barclays downgraded its rating on Nike shares from "overweight" to "equal weight", having reduced its target price for them from 125 dollars to 110 dollars.
In its comments, the broker justifies its downgrade by: (1) concerns about the strength of demand from wholesalers, (2) the persistent volatility of the Chinese market, (3) the rise in inventories in North America (which it believes poses an operational risk), (4) potential erosion of demand from US and European consumers and (5) unfavourable FX factors, mainly in Europe.
Nike shares took a battering on Wall Street yesterday, closing down about 4.5% at just under 102.5 dollars.
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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.
In its comments, the broker justifies its downgrade by: (1) concerns about the strength of demand from wholesalers, (2) the persistent volatility of the Chinese market, (3) the rise in inventories in North America (which it believes poses an operational risk), (4) potential erosion of demand from US and European consumers and (5) unfavourable FX factors, mainly in Europe.
Nike shares took a battering on Wall Street yesterday, closing down about 4.5% at just under 102.5 dollars.
Copyright (c) 2022 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.