Nike's downbeat outlook drags JD Sports and Puma, briefly lifts Adidas
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 28 2024
0mins
Should l Buy NKE?
Source: Yahoo Finance
- JD Sports and Puma Shares: JD Sports and Puma shares dropped significantly, while Adidas briefly rose after Nike forecasted a surprise fall in fiscal 2025 revenue.
- Nike's Business Recalibration: Nike is expected to recalibrate its business until at least spring 2025, providing Adidas with an opportunity to gain market share.
- Nike's Struggles: Nike faced declining demand for its sneakers as consumers favored newer brands like On and Hoka, leading to a significant drop in its shares.
- Adidas' Positive Outlook: Analysts noted that recent investor meetings for Adidas confirmed a positive narrative, with strong demand for 'terrace' sneakers and upcoming sport events likely to boost sales growth.
- Market Performance: JD Sports shares were down, while Adidas initially rose but later declined, impacting the pan-European STOXX 600 index.
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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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- Nike's Strategic Shift: Since being acquired by Nike in 2003, Converse has become a global brand; however, it now faces significant challenges within Nike's portfolio, particularly due to a lack of innovation beyond the core Chuck Taylor line, which could lead to a decline in brand value.
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