Dave Weiner of Deutsche Bank is cautious near term on Nike Inc (NYSE: NKE) ahead of its second-quarter
print on Tuesday, given slower-than-expected innovation, heavy discounting by retailers and a strong U.S. dollar.
A Look Ahead
For the second quarter, Weiner sees $0.43 EPS on $8.070 billion in revenues, with gross margin estimated at 44.3 percent.
Consensus is in line with the analyst’s EPS estimate, but slightly higher on revenue.
“Overall, we remain cautious near term on the stock given, in part, strong competition and a shift to lifestyle products, though
mgmt. comments on the development pipeline will be key,” Weiner wrote in a note.
Near-Term Focus
The near-term focus is centered around N.A. futures, ASP and second-half inflection. However, Weiner remains Buy-rated on
Nike
shares given its long-term drivers such as DTC/intl./apparel shifts, footwear automation, and localized manufacturing.
Shares of Nike
closed Friday’s trading session at $50.92.
Latest Ratings for NKE
| Date |
Firm |
Action |
From |
To |
| Dec 2016 |
Cowen & Co. |
Downgrades |
Outperform |
Market Perform |
| Dec 2016 |
HSBC |
Upgrades |
Hold |
Buy |
| Nov 2016 |
Wedbush |
Initiates Coverage On |
|
Neutral |
View More Analyst Ratings for
NKE
View the Latest Analyst Ratings
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