Breakingviews - Transshipment is the new dirty word of trade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 21 2025
0mins
Should l Buy NKE?
Source: Reuters
Impact of Trump's Trade Policies: Donald Trump's trade war is complicating the determination of product origins for U.S. imports, as tariffs vary significantly based on the country of origin, leading to potential misrepresentation by exporters, particularly from China.
Challenges in Global Supply Chains: The complexity of modern supply chains and the varying rules of origin create difficulties for customs officials, while countries like Malaysia and Thailand are collaborating with the U.S. to combat fraudulent relabeling of goods, amidst a backdrop of shifting global trade dynamics.
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Analyst Views on NKE
Wall Street analysts forecast NKE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NKE is 76.11 USD with a low forecast of 62.00 USD and a high forecast of 110.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
14 Buy
7 Hold
0 Sell
Moderate Buy
Current: 63.920
Low
62.00
Averages
76.11
High
110.00
Current: 63.920
Low
62.00
Averages
76.11
High
110.00
About NKE
NIKE, Inc. is engaged in the designing, marketing and distributing of athletic footwear, apparel, equipment and accessories and services for sports and fitness activities. The Company's operating segments include North America; Europe, Middle East & Africa (EMEA); Greater China; and Asia Pacific & Latin America (APLA). It sells a line of equipment and accessories under the NIKE Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment and other equipment designed for sports activities. It also designs products specifically for the Jordan Brand and Converse. The Jordan Brand designs, distributes and licenses athletic and casual footwear, apparel and accessories predominantly focused on basketball performance and culture using the Jumpman trademark. The Company also designs, distributes and licenses casual sneakers, apparel and accessories under the Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell trademarks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Advertising Impact: In the Nike advertisement aired post-victory, former player Marshawn Lynch emphasized the theme of “Bitter Tastes Good,” highlighting the value of hard work, which attracted consumer attention and reinforced Nike's brand image, showcasing its powerful influence in sports advertising.
- Nike's Market Reaction: Nike's shares surged in overnight trading following the Super Bowl ad, reflecting market optimism regarding the brand's revival, despite a nearly 10% decline in stock price over the past year, investors are hopeful about new CEO Elliott Hill's strategic repositioning efforts.
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- Company Response: A Nike spokesperson stated that the company has been cooperating extensively with the EEOC inquiry, having shared thousands of pages of information and is in the process of providing additional details, emphasizing their good-faith participation.
- Source of Complaints: The complaints against Nike were filed by America First Legal, a law firm co-founded by Trump advisor Stephen Miller, which has also lodged similar complaints against other companies, indicating a broader industry scrutiny.
See More
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- Layoff Criteria Investigation: The EEOC is requesting details on Nike's layoff criteria, the use of race and ethnicity data, and programs that may have limited mentoring and leadership opportunities based on race, which could impact the company's reputation and employee morale.
- Increasing Financial Pressure: Despite setting diversity goals in 2022, CFO Matt Friend warned during the recent earnings call of expected low single-digit revenue declines and a 175-225 basis point drop in gross margins, indicating significant financial challenges ahead for the company.
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See More
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- Super Bowl Victory: The Seattle Seahawks clinched the Super Bowl Championship by defeating the New England Patriots 29-13, marking a triumphant return after their previous loss in Super Bowl 49, which boosts team morale and enhances brand visibility.
- Advertising Impact: In the Nike advertisement aired post-victory, former player Marshawn Lynch emphasized the theme of “Bitter Tastes Good,” highlighting the value of hard work, which attracted consumer attention and reinforced Nike's brand image, showcasing its powerful influence in sports advertising.
- Nike's Market Reaction: Nike's shares surged in overnight trading following the Super Bowl ad, reflecting market optimism regarding the brand's revival, despite a nearly 10% decline in stock price over the past year, investors are hopeful about new CEO Elliott Hill's strategic repositioning efforts.
- Retail Sentiment Analysis: Although Nike's follower count on social platforms increased by 8%, retail sentiment remains in the 'bearish' territory, indicating cautious market outlook on Nike's future performance, which could impact its short-term stock price.
See More
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- Game Outcome: On February 8, 2026, Super Bowl LX saw the Seattle Seahawks defeat the New England Patriots 29-13, with 30 of the 42 total points scored in the fourth quarter, highlighting the game's intensity and enhancing the Seahawks' brand image.
- Ad Performance: According to USA Today's Ad Meter, brands like Anheuser-Busch, Lay's, and Dunkin' resonated well with viewers again this year, indicating effective emotional and comedic messaging strategies that continue to engage audiences.
- Viewer Feedback: Some ads featuring AI tools failed to win over viewers, reflecting a limited acceptance of technology-driven advertising among consumers, suggesting that companies need to reassess their advertising strategies to improve effectiveness.
- Market Impact: The Super Bowl remains a crucial platform for brand marketing, where successful ads can significantly boost brand visibility and directly influence sales performance, prompting companies to increase their advertising budgets in future campaigns.
See More
Dow Jones Index Surpasses 50,000 for the First Time
- Historic Milestone: The Dow Jones Industrial Average surpassed 50,000 for the first time in 2026, marking a significant achievement since its inception in 1896, reflecting sustained investor confidence amid economic fluctuations.
- Tech Stock Influence: This milestone was largely driven by strong performances from technology stocks, particularly Nvidia's replacement of Intel, highlighting the market's heightened focus and investment enthusiasm in the artificial intelligence sector.
- Market Rebound: Following a downturn in 2022, the Dow rebounded nearly 13% in 2023, with this breakthrough occurring against the backdrop of the index climbing over 1,100 points, demonstrating a robust market recovery.
- Changing Economic Landscape: Despite concerns over Trump's tariff policies and the impact of AI spending, the market has shown resilience, indicating investor optimism regarding future economic growth.
See More
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- Dow Jones Rebound: On Friday, the Dow Jones surged over 950 points, nearly 2%, indicating a strong market rebound, which Jim Cramer described as a 'mighty Dow rally', boosting investor sentiment.
- Amazon Stock Decline: Despite the overall rise in Dow components, Amazon's stock fell 7.5% due to massive spending plans and weaker-than-expected guidance revealed in Thursday's earnings report, impacting investor confidence.
- Eli Lilly Share Recovery: Eli Lilly shares bounced back 3% on Friday after an almost 8% drop, as the FDA announced actions against illegal copycat drugs, which bolstered market confidence in Lilly's growth potential.
- Linde Rating Downgrade: Following a 2.9% decline post-earnings on Thursday, Linde shares dropped another 1.7% on Friday after JPMorgan downgraded its rating to hold, although Jim Cramer maintained a buy rating and raised the price target to $510.
See More
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- Investigation Background: The EEOC is investigating Nike (NKE) over allegations of racial discrimination against white employees as part of its diversity initiatives, with information requests dating back to 2018.
- Legal Action: The EEOC has filed a subpoena enforcement action in federal court to compel Nike to provide information related to the allegations, examining whether there is a pattern of disparate treatment in hiring, promotions, demotions, and layoffs.
- Company Response: A Nike spokesperson stated that the company has been cooperating extensively with the EEOC inquiry, having shared thousands of pages of information and is in the process of providing additional details, emphasizing their good-faith participation.
- Source of Complaints: The complaints against Nike were filed by America First Legal, a law firm co-founded by Trump advisor Stephen Miller, which has also lodged similar complaints against other companies, indicating a broader industry scrutiny.
See More
EEOC Sues Nike Over Alleged Discrimination Practices
- Lawsuit Background: The EEOC filed a lawsuit against Nike in a Missouri federal court on Wednesday, seeking information related to alleged discrimination against white employees, highlighting potential issues within the company's Diversity, Equity, and Inclusion (DEI) initiatives.
- Layoff Criteria Investigation: The EEOC is requesting details on Nike's layoff criteria, the use of race and ethnicity data, and programs that may have limited mentoring and leadership opportunities based on race, which could impact the company's reputation and employee morale.
- Increasing Financial Pressure: Despite setting diversity goals in 2022, CFO Matt Friend warned during the recent earnings call of expected low single-digit revenue declines and a 175-225 basis point drop in gross margins, indicating significant financial challenges ahead for the company.
- Stock Price Fluctuation: Nike's stock has declined 16.29% over the past year, yet it rose 5.40% on Wednesday to close at $64.22, reflecting a cautious market sentiment regarding the company's future performance.
See More
