To Buy or Not to Buy? That Is the Nike Question
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To Buy or Not to Buy? That Is the Nike Question 12-January-2018 07:20 |
Registrado: 6 años antes Mensajes: 3 |
Shares of Nike (NKE) outran the competition in 2017 despite tough going for athletic retailers that were dogged by consumers' shifting shopping habits and the threat of Amazon (AMZN). Can nike air max 97 mens uk sale continue to stay ahead of the pack?
Analysts are torn. Some see positives on the stock-- a potential turnaround in North America and a boost from tax reform among them--while others remain concerned about potential downside thanks to worries about stiff competition. And in a September cover story, Barron's Jack Hough urged investors to avoid nike air max 90 womens sale cheap, arguing that there would be a better opportunity to buy Nike shares "when Nike has proven it can better defend itself against Adidas (ADDYY), or when its stock carries a humbler price."
That debate rages on today as two analysts took opposing sides in notes published Thursday. Count Macquarie's Laurent Vasilescu and his team in the bull camp after they reiterated an Outperform rating and $72 price target on air max 97 triple black for sale. Vasilescu hangs his bull thesis on
coming expansion--what he calls its "battleship mode"--to grab market share. Vasilescu cites Nike's fiscal second-quarter earnings (which disappointed the Street), arguing that amid the noise in the quarter, sales in Europe, the Middle East, and Africa ramped up, a trend he expects to extend to other countries soon. Its struggling North American business, meanwhile, continues to make progress, he says.
By contrast, Cowen's John Kernan and his team reiterated a Market Perform rating and $64 price target on the stock, arguing that it lacks catalysts for further gains, especially as margin worries persist. Kernan points to nike air max 90 essential wolf grey inventory, which grew 6% year over year in the second quarter, while noting that Finish Line (FINL) logged its lowest gross margin level in its history in its most recent quarter. Foot Locker (FL) is also seeing substantial gross margin contraction with little relief in sight, Kernan says.
Nike is down 0.6% to $63.84 this morning, and has gained 2.2% since the start of 2018, lagging the S&P 500's 3% rise. But eight trading days doesn't make a trend.
Analysts are torn. Some see positives on the stock-- a potential turnaround in North America and a boost from tax reform among them--while others remain concerned about potential downside thanks to worries about stiff competition. And in a September cover story, Barron's Jack Hough urged investors to avoid nike air max 90 womens sale cheap, arguing that there would be a better opportunity to buy Nike shares "when Nike has proven it can better defend itself against Adidas (ADDYY), or when its stock carries a humbler price."
That debate rages on today as two analysts took opposing sides in notes published Thursday. Count Macquarie's Laurent Vasilescu and his team in the bull camp after they reiterated an Outperform rating and $72 price target on air max 97 triple black for sale. Vasilescu hangs his bull thesis on
coming expansion--what he calls its "battleship mode"--to grab market share. Vasilescu cites Nike's fiscal second-quarter earnings (which disappointed the Street), arguing that amid the noise in the quarter, sales in Europe, the Middle East, and Africa ramped up, a trend he expects to extend to other countries soon. Its struggling North American business, meanwhile, continues to make progress, he says.
By contrast, Cowen's John Kernan and his team reiterated a Market Perform rating and $64 price target on the stock, arguing that it lacks catalysts for further gains, especially as margin worries persist. Kernan points to nike air max 90 essential wolf grey inventory, which grew 6% year over year in the second quarter, while noting that Finish Line (FINL) logged its lowest gross margin level in its history in its most recent quarter. Foot Locker (FL) is also seeing substantial gross margin contraction with little relief in sight, Kernan says.
Nike is down 0.6% to $63.84 this morning, and has gained 2.2% since the start of 2018, lagging the S&P 500's 3% rise. But eight trading days doesn't make a trend.
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