I Continue to Believe Nike (NKE)’s CEO is a Winner, Says Jim Cramer
We recently published 10 Stocks on Jim Cramer’s Radar. NIKE, Inc. (NYSE:NKE) is one of the stocks on Jim Cramer's radar.
NIKE, Inc. (NYSE:NKE) is a stock that Jim Cramer frequently discusses. The firm reported its second fiscal quarter earnings on December 18th. The results saw NIKE, Inc. (NYSE:NKE)’s $12.43 billion in revenue and $0.53 in earnings beat analyst estimates of $12.22 billion and $0.38. However, media reports suggested that a 17% drop in Chinese revenue contributed to a post-earnings share price drop.
NIKE, Inc. (NYSE:NKE)’s ongoing turnaround is a key factor for debate, and following the earnings, multiple analysts shared their take on the firm. For instance, UBS cut the share price target to $62 from $71 on December 19th and kept a Neutral rating. The bank explained that while NIKE, Inc. (NYSE:NKE) should return to growth eventually, the firm needs more time to adjust its inventory. Joining UBS, BofA also cut the share price target. It reduced NIKE, Inc. (NYSE:NKE)’s target price to $73 from $84 and cited Chinese concerns as the reason. Stifel trimmed the target by $3 to $68 and kept a Hold as it commented on the third quarter guidance miss.
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As for Cramer, he focused on China but kept the faith with NIKE, Inc. (NYSE:NKE) and shared additional insight in the form of the ongoing debate in the Supreme Court about President Trump’s tariffs:
“China was quite difficult for them, because they were so trashed. They trashed themselves, they were in the wrong outlets, they’ve got bad inventory. One of the things that Elliott said that was devastating was this reality, we’ve become a lifestyle brand. I mean that is the kiss of death. They’re not a lifestyle brand, they’re a sports brand. Matter of fact, they changed a lot of things in America. They changed it from, having a man, woman, child brand to having, verticals to sports.
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