Nike may be planning Converse exit, says BNP Paribas

BNP Paribas believes Nike’s (NKE) $300M of charges related to organizational changes could indicate the company is planning to exit or dispose of its Converse business. Nike stated “management has been evaluating opportunities to operate more efficiently and profitably through realigning costs, while also investing to reignite growth,” the analyst tells investors in a research note. BNP believes Converse may be the “Costs Associated with Exit or Disposal Activities” referenced in last night’s regulatory filing. The firm has an Underperform rating on Nike with a $35 price target