Nike: Bank of America cuts target price

(CercleFinance.com) - Bank of America announced on Monday that it had lowered its target price for Nike shares from $125 to $120, while renewing its "neutral" rating on the stock.


The US broker explains that it is still waiting for favorable catalysts that could lead it to revise its opinion on the stock.

In its view, one of these drivers could come from the sports equipment manufacturer's ability to innovate and boost sales in areas such as running and women's products, as well as its flagship Jordan franchise.

While BofA expects some new products to be launched in time for the Paris Olympic Games, it insists that these must appeal to the general public, and not just to top-level sportsmen and women.

BofA also believes that greater visibility regarding the imminent end of the intense promotional offers currently in place in China could be an important lever for a possible recovery of margins in the country.


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