NIKE : Jefferies reiterates its Hold recommendation
March 22, 2024 at 08:32 am EDT
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Jefferies reaffirms its Hold recommendation on the stock, with a price target of $100, following the announcement of its financial results for its third quarter 2023/2024 ended February 29, 2024.
' Many management changes have taken place to improve speed and productivity, but it will take time for them to bear fruit' says the analyst firm.
The analyst says the company is changing its distribution model to focus more on wholesale, which shows some indecision in strategic direction.
The upside is that Nike has identified its own problems, but the downside is that this will take time to resolve," adds Jefferies.
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Nike, Inc. specializes in the design, manufacturing and marketing of sports shoes, clothing, and equipment. The group's products are sold primarily under the names Nike, Jordan, Converse Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell. Net sales break down by family of products as follows:
- footwear (68.9%);
- clothing (27.2%);
- sports equipment (3.4%): golf equipment (golf clubs, balls, gloves, etc.), bags, balls, etc.;
- other (0.5%).
At the end of May 2023, products were being marketed through a network of 1,032 stores worldwide, through independent distributors, and via the Internet.
Net sales are distributed geographically as follows: North America (44.3%), Europe/Middle East/Africa (27.5%), China (14.9%), Asia/Pacific and Latin America (13.2%) and other (0.1%).
NIKE, INC. 
