Consumer Discretionary

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our 12-month price target by $4 to $95, based on 25.3x our FY 25 (Mar.) EPS estimate and below the company’s 2-year average forward P/E multiple of 29.4x, reflecting our view that growth will be harder to come by for the footwear and apparel giant over the next 5 years. We raise our FY 24 EPS estimate by $0.15 to $3.65 and maintain our FY 25 EPS estimate of $3.75. NKE posts normalized Q3 EPS of $0.98 vs. $0.79, $0.23 above consensus estimates on revenues of $12.43B vs. $12.39B and $130M above estimates. By region, China revenues grew 6%, EMEA declined 4%, North America grew 3%, and APLA grew 4%. Q3 gross margin increased 150 bps to 44.8%, driven by lower freight and logistics costs […]

RBC Capital analyst Piral Dadhania downgrades Nike (NYSE:NKE) from Outperform to Sector Perform and lowers the price target from $110 to $100.

Wedbush analyst Tom Nikic reiterates Nike (NYSE:NKE) with a Outperform and maintains $115 price target.

Nike is one of the most mentioned companies in the U.S. across all news items in the last 12 hours, according to Factiva data. Nike said revenue rose slightly in its third quarter amid a recovery in wholesale sales as the company implements a restructuring plan that includes about 1,600 layoffs. The company said quarterly profit fell to $1.17 billion, or 77 cents a share, from $1.24 billion, or 79 a share, in the year-earlier quarter. Analysts polled by FactSet had forecast earnings per share of 69 cents. Revenue rose 0.3% to $12.43 billion, coming in ahead of Wall Street expectations for $12.28 billion, according to FactSet. Dow Jones & Co. owns Factiva.

Nike’s (NKE) outlook for H1 2025 implies no revenue growth for calendar year 2024, which “leaves little to play for in the near term,” RBC Capital Markets said in a note to clients on Friday. The company is “prudently” projecting sales to be down by low-single-digits for the first six months of its following fiscal year, Nike Chief Financial Officer Matthew Friend said during a late Thursday conference call to discuss fiscal Q3 financial results, according to a Capital IQ transcript. The guidance “reflects near-term headwinds from life cycle management of our key product franchises, more than offsetting the scaling of new products as we shift our product portfolio toward newness and innovation,” Friend said. “This also continues to reflect the subdued macro outlook around the world.” RBC said that “organizational restructuring [plus] product transition over the next few quarters add further uncertainty and guidance risk in our view.” “We

Nike (NKE) is taking the right steps to improve its performance after its fiscal Q3 results pointed to challenging business fundamentals, UBS said in a note on Friday. The report said Nike is making changes that include bringing back the category offense and focus on sports, adjusting its DTC strategy and ramping marketing spend. “These changes are the right steps and will cause Nike’s business to inflect over the NTM, driving P/E expansion and stock outperformance,” said UBS analysts, including Jay Sole. UBS kept its buy rating while cutting its price target to $125 from $138. The analysts also said Nike’s brand image is still looking to regain momentum as its top selling shoes are not resonating with consumers as well as they once did. “Nike needs to add much more newness to its assortment to drive growth,” they said.

UBS says Nike’s 3Q was “disappointing” and shows business fundamentals remain challenging, but that restructuring changes should help the business inflect over the near term. The analysts say in a research note that Nike is taking the right steps, but it needs to add much more newness to its assortment to drive growth, as its top selling shoes are not resonating with consumers as well as they once did. UBS lowers its FY25 and FY26 sales estimates by 2.5% and 2.1%, respectively, and cuts its target price to $125 to $138. Shares slide 6% to $94.69.

Baird analyst Jonathan Komp maintains Nike (NYSE:NKE) with a Outperform and lowers the price target from $140 to $125.