Canaccord Genuity Maintains a 'Hold' on Nike (NKE); FQ2 Review: Strong Top Line, but Margins Weakening
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Price: $40.73 -1.21%
Rating Summary:
26 Buy, 28 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
26 Buy, 28 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Canaccord Genuity maintains a 'Hold' on Nike (NYSE: NKE) price target of $96.00.
Canaccord analyst, Camilo Lyon, said, "NKE reported FQ2 EPS of $1.00 vs. our $0.96 estimate and consensus of $0.97. Relative to our model, slightly stronger sales (+1c) and lower SG&A (+9c) were offset by worse gross margins (-5c). Similarly, full-year revenue guidance was inched higher to mid-teens from low-mid-teens, but gross margin was lowered given higher discounting and F/X headwinds. Taking it altogether, we maintain our rating as we believe the risk/reward is at best balanced given mounting margin pressures that are capping EPS growth."
"Accelerating NA futures orders of 16% bode well for US retailers such as Foot Locker (NYSE: FL), Finish Line (Nasdaq: FINL), Dick's Sporting Goods (NYSE: DKS), and Hibbett (Nasdaq: HIBB). Global futures were in line with our estimate of 13%."
For an analyst ratings summary and ratings history on Nike click here. For more ratings news on Nike click here.
Shares of Nike closed at $93.63 yesterday.
Canaccord analyst, Camilo Lyon, said, "NKE reported FQ2 EPS of $1.00 vs. our $0.96 estimate and consensus of $0.97. Relative to our model, slightly stronger sales (+1c) and lower SG&A (+9c) were offset by worse gross margins (-5c). Similarly, full-year revenue guidance was inched higher to mid-teens from low-mid-teens, but gross margin was lowered given higher discounting and F/X headwinds. Taking it altogether, we maintain our rating as we believe the risk/reward is at best balanced given mounting margin pressures that are capping EPS growth."
"Accelerating NA futures orders of 16% bode well for US retailers such as Foot Locker (NYSE: FL), Finish Line (Nasdaq: FINL), Dick's Sporting Goods (NYSE: DKS), and Hibbett (Nasdaq: HIBB). Global futures were in line with our estimate of 13%."
For an analyst ratings summary and ratings history on Nike click here. For more ratings news on Nike click here.
Shares of Nike closed at $93.63 yesterday.
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