Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Merrill Downgrades Nike


Merrill downgrades Nike NKE to neutral from buy.

Analyst Virginia Genereux says that while the company's valuation appears reasonable, she sees some headwinds. She notes third-quarter earnings per share consensus looks high to her at 97 cents.

She believes Nike will be negatively impacted by S&P's transition to free float index, noting Nike is the fifth biggest weight loser in market cap. She feels Nike's shift from one-brand company to multi-brand will ultimately command a lower multiple.

Another risk is the uncertainty around the company's new management regime--Phil Knight may diversify his Nike holdings. She Genereux notes athletic footwear and apparel end market growth is slowing everywhere except China.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus