In response to Jefferies lowering its rating on Nike from buy to hold, investors and analysts have expressed their reactions. Randal Konik, the analyst responsible for the downgrade, also reduced Nike’s price target by $40 to $100. This decision was based on a recent consumer survey conducted by the firm, which indicated a potential slowdown in spending as federal student loan payments resume in October. These loan repayments had been on hold since March 2020 as part of Covid-19 relief measures. As a result, Nike’s stock closed down 0.3% on Monday, and the company is scheduled to announce its earnings report on Thursday.
The downgrade of Nike’s rating by Jefferies has caught the attention of investors and analysts, igniting discussions about the future of the sports apparel retailer. Randal Konik’s decision to lower the company’s price target alongside the rating change has raised concerns among market participants. The basis for this decision lies in a recent consumer survey conducted by Jefferies, revealing the likelihood of reduced spending as federal student loan payments resume in October. With these repayments being on hold since March 2020 under Covid-19 relief measures, the impending increase is expected to have an impact on consumer behavior. As a consequence, Nike’s stock experienced a 0.3% decline in value on Monday. The company’s upcoming earnings report, scheduled for Thursday, will provide further insight into its financial performance.
Following Jefferies’ decision to lower its rating on Nike, the stock witnessed a modest decrease in value. This rating downgrade was justified by the findings of a consumer survey conducted by the firm, indicating a potential slowdown in spending due to the upcoming resumption of federal student loan payments. Nike’s price target was also adjusted downwards by Randal Konik, the analyst responsible for the rating change. With loan repayments being paused since March 2020 in response to the Covid-19 pandemic, the impending restart in October is expected to impact consumer behavior and spending patterns. As a result, Nike’s stock closed down 0.3% on Monday. Market participants eagerly await the company’s earnings report on Thursday to gain more insight into its financial performance and future prospects.