Visitors Now:
Total Visits:
Total Stories:
Profile image
By ETF Daily News (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Canaccord Genuity Says Nike’s Upcoming Earnings Will Disappoint

Friday, September 23, 2016 12:25
% of readers think this story is Fact. Add your two cents.

(Before It's News)

Athletic footwear and apparel maker Nike Inc (NYSE:NKE) received some bearish notes from analysts at Canaccord Genuity today.

The firm maintained its “Hold” rating but cut its price target on NKE from $56 to $52, citing several factors that will likely affect future orders. In a note to clients, Canaccord commented:

“Our concerns on NKE are mounting. While FQ1 results to be released Tuesday, Sept. 27 AMC will likely top consensus EPS of 56c (we’re at 58c) due to the highly conservative guidance issued last quarter, we believe the more important metric to watch will be futures orders.”

Related: See what ETFs own the most NKE

The crux of the firm’s argument is increased competition, a weak product mix, and more:

We expect global constant currency futures to decelerate to 5.6% due to five factors including: 1) increasing competitive pressures from adidas and UA impacting orders; 2) lack of exciting new product to warrant increased shelf space allocation; 3) price reductions on Nike Signature basketball not likely to be made up by unit growth; 4) inventory building in China and Western Europe; and 5) post-Olympics deceleration of orders. We maintain our HOLD as the stock is likely range bound with a downward bias through year end.”

Nike is slated to report earnings on Tuesday, Sept. 27 after the bell. It’ll be interesting to see if Canaccord’s concerns factor into the company’s future guidance at that time.

NKE-2016-09-23

Nike shares fell $0.22 (-0.41%) to $55.19 in Friday afternoon trading. Year-to-date, NKE has lost 11.65%.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.