Nike Stock Forecast: NKE RISES 3% on broader market recovery

Nike Stock Forecast: NKE RISES 3% on broader market recovery

Nike Stock Forecast for the next 12 months is $104. The current outlook is Partially Positive. The stock is a Sell.


Nike Stock Forecast: Price today

Nike Stock Forecast: Recent Performance

5 days 1 month YTD
NKE -8.7% -15.7% -46.2 %
DJIA+3.5% -2.9%-17.4%

Nike Stock Forecast: Latest News

More inventories led to stock fall: Nike stated that its inventories increased to $9.7 billion which is more than 44% from the previous year. This led the stock to fall by 12%. This is not positive news for the company because more inventories mean more sales and discounts

which lead to low-profit margins in the next quarter, but “We see strong consumer demand in North America currently, There’s no signs of any softness”, CEO John Donahoe said. The strong demand can be seen as a positive aspect.

Strong Dollar: The strengthening of the dollar is making goods costlier for other countries, leading to a decrease in international sales and profits. “Headwinds from foreign exchange shifted significantly in the last 90 days as the trend of US dollar strengthening has accelerated,” Nike’s finance chief Matthew Friend said.

China’s lockdown policies are paining the company a lot, as china is one of the biggest markets for Nike, and the company told that the revenue from China has decreased by 16% this year due to their “zero covid policy” i.e; the lockdowns which led to decreased sales.

The Company said that the increased transport costs, higher inflation, and markdowns will lead to a decrease in the profit margin. It also estimates that foreign exchanges will hurt its revenue.

Nike Stock Forecast: Latest Video

YouTube video

Nike Stock Forecast: Price target for the next 12 months

Overall Average$104
Deutsche Bank$99
BMO Capital Markets$110
Bank of America$100
Morgan Stanley$120
Wedbush$101
Cowen$114
Citigroup$93
Goldman Sachs$98

Nike Stock Forecast: Q1 Results

  • Nike released its Fiscal 2023; Quarter 1 (which ended on August 30, 2022) results in September.
  • Its total revenue was reported as $12.7 billion, up 4% compared to the previous year.
  • Its net income was $1.5 billion, down 22%.
  • Its gross profit was $5.6 billion, up 2% q-q and down 1.4% y-y.
  • Its operating income was $1.69 billion, up 15.5% q-q, whereas its operating expenses decreased by 2.8% q-q and are reported as $3.9 billion.
  • Its direct sales were $5.1 billion, up 8% compared to the previous year.
  • Its EBITDA was declared as $1.9 billion, up 8% q-q.
  • Its diluted earnings per share (EPS) were $0.93, down 20%.

Nike Stock Price Prediction Today

OverallPartially Positive
1. Market’s WisdomNeutral
Market DataHigher
Technical RecommendationSell
2. Crowd’s WisdomPositive
2aGoogle SearchHigher
2b. Social Media SentimentHigher

NKE Stock Forecast: Latest Tweet

Nike Stock Forecast: Conclusion

Nike’s revenue and sales have increased but its major problem lies with its high inventories and China’s lockdown policies. There are many other obstacles such as high transportation costs, inflation, recession, the strong dollar, and higher markdowns which are affecting its gross profits. So, Nike is expected to see a decrease in its yearly growth due to all these issues.

Writer: Bommu Vaishnavi

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Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

Subhash

Subhash

Subhash, Founder of Crowdwisdom360 is an MBA and a Trained Financial Advisor with an extensive background in Forecasting in Financial Services and Politics. He has appeared many times on National TV and has written for a variety of magazines on Wealth Management and Election Strategy.