We recently published 10 Stocks on Jim Cramer’s Radar. NIKE, Inc. (NYSE:NKE) is one of the stocks on Jim Cramer’s radar.
NIKE, Inc. (NYSE:NKE) is a stock that Jim Cramer frequently discusses. The firm reported its second fiscal quarter earnings on December 18th. The results saw NIKE, Inc. (NYSE:NKE)’s $12.43 billion in revenue and $0.53 in earnings beat analyst estimates of $12.22 billion and $0.38. However, media reports suggested that a 17% drop in Chinese revenue contributed to a post-earnings share price drop.
NIKE, Inc. (NYSE:NKE)’s ongoing turnaround is a key factor for debate, and following the earnings, multiple analysts shared their take on the firm. For instance, UBS cut the share price target to $62 from $71 on December 19th and kept a Neutral rating. The bank explained that while NIKE, Inc. (NYSE:NKE) should return to growth eventually, the firm needs more time to adjust its inventory. Joining UBS, BofA also cut the share price target. It reduced NIKE, Inc. (NYSE:NKE)’s target price to $73 from $84 and cited Chinese concerns as the reason. Stifel trimmed the target by $3 to $68 and kept a Hold as it commented on the third quarter guidance miss.
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As for Cramer, he focused on China but kept the faith with NIKE, Inc. (NYSE:NKE) and shared additional insight in the form of the ongoing debate in the Supreme Court about President Trump’s tariffs:
“China was quite difficult for them, because they were so trashed. They trashed themselves, they were in the wrong outlets, they’ve got bad inventory. One of the things that Elliott said that was devastating was this reality, we’ve become a lifestyle brand. I mean that is the kiss of death. They’re not a lifestyle brand, they’re a sports brand. Matter of fact, they changed a lot of things in America. They changed it from, having a man, woman, child brand to having, verticals to sports.
“Okay I’m going to say something that people are not going to like. Got to buy the stock. . .two reasons, one, if you think, that the supremes are going against the President, 70, like that. Okay. In tariff. Now I’m not talking Kalshi, I don’t want to go to Kalshi, because I’m investment. So I want to own the stock. . .I’d rather own the stock than bet on the supremes. . .but, second, Elliott Hill is a different kind of CEO. He came in and he recognized, Carl, there were so many things wrong. And he fixed North America. North America’s really good, but then he goes on and on about how poorly he’s doing in China, to lower expectations. They are doing poorly in China in every single thing they’ve tried, they’ve tried to discount that, it didn’t work. They tried full price, that didn’t work. But he’s going to go over there. And Elliott Hill’s going to fix it. And we’re all going to say, why didn’t we buy it at 56, 57. Now I am not doing the Jefferies back up the truck, because previously he had said, just buy it, credibility issue. But I do say that, you know what, those who sell it down here, I think they’re gonna look back and say, first when the Supreme Court, when Gorsuch says listen we don’t like the tariffs, you’re going to say why didn’t I buy at 70, and then why China turns, you’re gonna say why didn’t I buy it at 80? So, yes, I’m a believer in Elliott, totally, and I think he ran a great call. It was a self effacing call. . .
“. . .I am saying that the turn is real, he will do it. . .you either believe in Elliott Hill or you don’t. Okay. You’re betting on Elliott Hill, and he came in, when I saw him last, he said I’m gonna turn US. . . and this quarter US had turned. Now, he’s set his sights on China and people can sit there and say you know what, he’s gonna screw up China or you can say he’s a winner. I’m going with the winner attitude. . .”
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Disclosure: None. This article is originally published at Insider Monkey.
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