Nike margins to improve in second half of FY24- TD Cowen

Hibbett

21/06/2023 14:48

(Updates)
    ** Brokerage Telsey Advisory Group cuts price target on
footwear maker Nike  NKE.N  to $135 from $140, while TD Cowen
cuts PT on stock to $141 from $142
    ** Telsey cites NKE's weakening demand trends in U.S. and
lower-than-estimated annual forecasts as well as downbeat
results by footwear retailers Foot Locker  FL.N  and Hibbett
 HIBB.O  
    ** Telsey reiterates "outperform" rating on NKE, says co is
benefiting from China market reopening and lower ocean freight
and supply chain costs 
    ** TD Cowen says Nike's gross margins are expected to remain
pressured in Q4 and Q1, but expects recovery in the second half
of FY2024
    ** 24 of 38 brokerages rate stock "buy" or higher, 10 "hold"
and four "sell" or lower; their median PT is $135 - Refinitiv
    ** Shares of NKE down marginally at $109.44
    ** Stock has fallen near 7% in 2023

 (Reporting by Anne Florentyna Gnanaraja Sekar in Bengaluru)
 ((AnneFlorentyna.GnanarajaSekar@thomsonreuters.com;))