Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Canaccord Genuity’s Camilo Lyon maintained a Hold rating on Nike Inc (NYSE: NKE), while lowering the price target from $66 to $57.
Lyon mentioned that the company reported sales growth of 7.7 percent for FQ3, at the low end of the guidance and below the estimates and the consensus.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
However, the EPS came in at $0.55, beating expectations, due to a lower tax rate, significantly lower than planned expense growth and flat gross margins.
“Despite the EPS beat, the softer sales growth is likely to weigh on the stock as it is the key metric (highest correlation) influencing stock performance,” Lyon pointed out.
Multiple Compression Expected
The analyst also stated that the stock is likely to see multiple compression, driven by the revenue miss during the quarter, as well as futures orders “becoming less of a predictor of reported sales.”
In addition, the North American inventory levels continued to be elevated. Lyon believes that this situation is being aggravated by the weakness in Nike’s signature basketball business.
The analyst also noted that increased competition was leading to market share losses for the company in retail.
“Taking it together, coupled with a premium valuation, we believe the stock will remain range-bound until sales beats can materialize,” Lyon added.
The analyst said they can't ignore the likelihood that increased competition from Under Armour Inc (NYSE: UA) and Adidas (OTC: ADDYY) is resulting in share loss at retail.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.