Investing.com — Nike’s recently appointed CEO insider Elliott Hill has taken over the reins amid mounting near-term challenges for the apparel maker, Stifel analysts said in a note, adding that Nike’s He pointed out the risks to quarterly profits.
Mr. Hill who participated nike (NYSE:), where he interned in 1988 and became CEO in early October, replacing John Donahoe. The management change comes after the sportswear giant withdrew its full-year revenue forecast and warned that revenue for the November quarter would fall between 8% and 10%.
Stifel analysts said they welcome Nike insiders to lead the company, but the company is still in “reset mode” and it takes time to revitalize the culture and drive brand momentum. I warned you that it would take.
“Absent market evidence of earnings stabilization or improved visibility into earnings volatility, it is difficult to support the potential for stock price upside from current stock levels,” Stiefel analysts wrote in a note. said.
Brokers have warned that Nike could fall short of expectations when it reports its November quarter results next week amid a less conducive currency environment and weaker sales in its top market, China.
Stifel expects 2025 to be a transformational year for Nike, as the company ramps up promotional efforts to counter stiff competition and slow sales.
The brokerage has a hold rating on Nike, with a price target of $79.0, slightly above Wednesday’s closing price of $78.85.
