Analyst on Nike: 'I’m Going to Stay Away From It'http://www.cnbc.com/id/48018212“Clearly, a lot of new product is working, especially here in the states, but it sounds to us like China, especially the tier 1 and tier 2 cities, may be a little oversaturated at this time,” said Sam Poser, a senior footwear and apparel analyst at Sterne Agee.Following Nike’s disappointing earnings release, Sterne Agee downgraded its stock to ‘neutral’ from a ‘buy’ rating and a $125 price target. The company’s stock plunged in trading on Friday.Nike reported that its gross margin fell due to marketing expenses related to the Summer Olympics, a climbing tax rate and a customs charge in one of its emerging markets. “It sounds like they’ve got a little work to do that could take a year-plus to do it,” Poser told CNBC’s “Squawk on the Street.”“Business in emerging markets and North America are very strong still,” he said.Although the company missed analysts’ earnings estimates, it still topped revenue forecasts. It also increased prices and cut costs during the quarter.Poser called Nike a “show-me situation” at this time, adding that he wants to make sure that the company delivers on what it is promising.“It’s a great company,” he said. “It’s just that until I get a little more clarity, I’m going to stay away from it.”
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar