Nike: Susquehanna cuts target price

(CercleFinance.com) - Susquehanna maintains its "neutral" rating on Nike, while reducing its target price for the share from 62 dollars to 59 dollars, saying that the recent string of executive departures at the world's largest sportwear maker "increases downside risk to growth trajectory.
"

The broker notes that Nike has experienced nine director-level or higher executive departures over the last 35 days, with checks, indicating more departures could be on the way.

While recognising that replacing executives that do not fit to the group's culture is positive at the end of the day, Susquehanna also said that it could be a very long journey.

"The executive departures could be more disruptive than most appreciate," the broker comments, adding that Nike is not a cheap stock anyway.


Copyright (c) 2018 CercleFinance.com. All rights reserved.