Nike falls after Berenberg downgrades stock to 'sell'
Nike shares fell around 1% premarket after Berenberg downgraded the stock to 'sell' from 'buy', citing pressure on revenues through FY28 and a tired management.
50 from $49. Analyst Nick Anderson said Nike appears to have accepted a smaller place in sportswear, adding that its push to organise the business around smaller areas looks to him like an acknowledgement that the market structure has shifted irreversibly against the company. Berenberg said revenues are likely to stay under pressure through FY28, that management sounded tired, and that the Pace restructuring plan may offer little help until FY29. The brokerage also said a recovery in China is not a sure thing.
The downgrade came after S&P Global cut Nike's credit rating to 'A' from 'A+' on Monday and assigned a negative outlook, saying the company's turnaround efforts will take more time and higher investment. 90. Nike has fallen about 47% year to date as of the last close.