Stifel Nicolaus analyst Jim Duffy has maintained their neutral stance on NKE stock, giving a Hold rating on April 1.
Jim Duffy’s rating is based on a combination of factors affecting Nike’s current market position. The recent financial disclosures indicate that while Nike’s results were better than anticipated, the outlook for the upcoming quarter appears more challenging. A significant concern is the impact of reciprocal tariffs, which are putting pressure on the cost of goods sourced outside the U.S., potentially affecting profitability.
Additionally, Nike is facing issues with excess inventory in North America, which could hinder full-price sales and impact gross margins. Although there is some improvement in inventory alignment internationally, the elevated inventory levels in its largest market remain a concern. Despite some positive trends, such as lessening ASP headwinds in footwear and apparel, the overall environment remains uncertain, justifying a Hold rating on Nike’s stock.
According to TipRanks, Duffy is a 4-star analyst with an average return of 2.8% and a 46.30% success rate. Duffy covers the Consumer Cyclical sector, focusing on stocks such as VF, Lululemon Athletica, and Wolverine World Wide.
In another report released on April 1, RBC Capital also maintained a Hold rating on the stock with a $66.00 price target.