Notably, Nike is one of the last global brands to exit Russia, announcing the news came through an email statement, Reuters reports. Meanwhile, ahead of its earnings release on June 27, the company is receiving more skeptical reviews from Wall Street analysts, as Seaport Research Partners downgraded the stock to neutral on June 22. Preceding this downgrade was a critical note by Morgan Stanely’s analyst Alex Straton who is expecting more trouble for Nike in China and things to get worse before they get better.
NKE chart and analysis
In the meantime, since December 2021, the shares of the company have been in a downward momentum with unusual trading volume spikes in March and the second part of May. Right now, shares are below all daily Simple Moving Averages (SMAs), trading choppily between the $100 and $120 range. Nevertheless, TipRanks’ analysts rate the shares a moderate buy, predicting that in the next 12 months the shares could reach an average price of $143.94, 36.33% higher than the current trading price of $105.58. Currently, the sentiment for Nike doesn’t seem to be too hot, as the shares are down over 35% year-to-date (YTD), while the likes of Morgan Stanley and Seaport Research Partners pile on to reiterate their neutral stance or downgrade the company’s shares. Whatsmore, the macroeconomic conditions are not ideal; with a possible recession on the horizon, consumers could decide to cut back on athletic apparel. Similarly, slowdowns in China due to the more recent Covid-related lockdowns have seen supply chains stressed and consumers only buying the necessities. Investors should be cautious and seek possibly better entry points with more volatility in the stock likely ahead. Buy stocks now with Interactive Broker – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
