As investors await for athletic footwear and apparel company Nike (NYSE: NKE) to announce its earnings results on September 28, top-rated Jeffries analyst Randal Konik downgraded the stock from Buy to Hold. The analyst expressed concerns over ongoing pressure in the wholesale channel and challenges in China due to macroeconomic headwinds.
Jeffries’ consumer survey revealed worrisome trends, with 87% of U.S. consumers who are burdened by student debt fearing being able to meet monthly expenses. In response, 54% planned to cut spending on apparel and accessories, while 46% intended to reduce footwear expenses. This survey suggests that U.S. consumer spending may decline, potentially impacting Nike’s sales.
Konik also lowered his price target to $100, implying an upside potential of 10.1% from current levels.
Is Nike a Buy or Sell?
Analysts remain cautiously optimistic about NKE stock, with a Moderate Buy consensus rating based on 20 Buys, six Holds, and three Sells.
