Should Investors Consider Selling Nike Inc (NYSE:NKE) Shares Now That Goldman Sachs Downgraded The Company?


Nike Inc (NYSE:NKE) Receives a Downgrade

New York-listed Nike Inc (NYSE:NKE), was lowered by research analysts at Goldman Sachs. They lowered their rating on the $113.61 billion market cap company to a “Buy” from their past “Conviction Buy” rating, but decided to keep their target price per share of $148.00 on NKE.

From a total of 28 analysts covering Nike Inc. (NYSE:NKE) stock, 26 rate it a ”Buy”, 0 a “Sell”, and 4 a ”Hold”. This means that 87% of the ratings are positive. The highest target price is $200 while the lowest target price is $120. The mean of all analyst targets is $140.79 with a 2.80% above today’s ($133.35) stock price. Nike Inc. was the topic of 42 analyst reports since July 29, 2015 according to the firm StockzIntelligence Inc. Telsey Advisory Group maintained shares on November 2 with “Outperform” rating. S&P Research maintained shares with “Buy” rating and $136 target share price in a report from a September 28. B. Riley & Co maintained NKE stock in a recent report from October 16 with “Buy” rating. Credit Suisse maintained the rating on September 25. Credit Suisse has a “Outperform” rating and a $126 price target on shares. Finally, FBR Capital maintained the stock with “Mkt Perform” rating in a report issued on an October 15.

The stock increased 0.03% or $0.04 during the last trading session, striking $133.35. Approximately 5,984 shares of stock traded hands. Nike Inc (NYSE:NKE) has risen 33.08% since April 29, 2015 and is uptrending. It has outperformed by 33.28% the S&P500.

Analysts await Nike Inc (NYSE:NKE) to reports earnings on December, 17. They expect $0.84 earnings per share, up 13.51% or $0.10 from last year’s $0.74 per share. NKE’s profit will be $715.65M for 39.69 P/E if the $0.84 EPS becomes reality. After $1.34 actual earnings per share reported by Nike Inc for the previous quarter, Wall Street now forecasts -37.31% negative EPS growth.

NIKE, Inc. is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. The company has a market cap of $113.61 billion. The Firm sells its products to retail accounts, through NIKE-owned retail stores and Internet Websites , and through a mix of independent distributors and licensees throughout the world. It has 33.67 P/E ratio. The Firm focuses its NIKE Brand product offerings in eight key categories: Running, Basketball, Football (Soccer), Men’s Training, Women’s Training, Action Sports, Sportswear (the Company’s sports-inspired lifestyle products) and Golf.

According to Zacks Investment Research, “Nike, Inc.’s principal business activity involves the design, development and worldwide marketing of high quality footwear, apparel, equipment, and accessory products. NIKE is the one of the largest sellers of athletic footwear and athletic apparel in the world. The company sells its products to retail accounts in the United States and through a mix of independent distributors, licensees and subsidiaries in numerous countries around the world.” Get a free copy of the Zacks research report on Nike Inc (NKE).