Investors and analysts are closely monitoring Nike as Jefferies downgraded its rating on the stock from buy to hold. This decision was accompanied by a significant reduction in Nike’s price target, lowering it by $40 to $100. The downgrade comes as Jefferies’ recent consumer survey suggests a potential slowdown in spending when federal student loan payments resume in October. These payments had been on hold since March 2020 as a relief measure during the Covid-19 pandemic. On Monday, Nike’s stock closed down by 0.3%, adding to the anticipation for the company’s upcoming earnings report on Thursday.
The downgrade of Nike’s stock by Jefferies has caught the attention of stakeholders, with investors and analysts closely scrutinizing the situation. Jefferies’ call to downgrade the stock from buy to hold is accompanied by a significant drop in Nike’s price target. The reduction of $40 to $100 raises concerns about the company’s future performance. This decision is based on Jefferies’ recent consumer survey, which indicates a potential slowdown in consumer spending as federal student loan payments are set to resume in October. These loan repayments have been paused since March 2020 as part of the Covid-19 relief measures. As a result, Nike’s stock experienced a slight decline of 0.3% on Monday. With the company’s earnings report scheduled for Thursday, market participants are particularly keen to gauge Nike’s performance in the coming period.
The recent downgrade of Nike’s stock by Jefferies has significant implications for the sports apparel retailer. Jefferies’ decision to lower the rating from buy to hold raises concerns about the company’s performance and indicates potential challenges ahead. The downgrade is in response to a consumer survey conducted by Jefferies, which suggests a potential slowdown in spending as federal student loan payments begin again in October. These payments were paused in March 2020 due to the ongoing Covid-19 pandemic. As a result, Nike’s stock closed down by 0.3% on Monday, adding to the anticipation surrounding the company’s upcoming earnings report, which is scheduled for Thursday. Investors and analysts will be closely monitoring the report to assess the impact of the downgrade and to gain insights into Nike’s future prospects.