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Nike Catches Three Downgrades Following Disastrous Q4 Earnings Report (NKE)

By Dividend.com,  June 29, 2012, 08:30:04 AM EDT

Athletic footwear and apparel maker Nike, Inc. ( NKE ) on Friday caught three downgrades from major Wall Street analysts following Thursday's disappointing fourth quarter earnings report .

Baird Cuts NKE to "Neutral"
Robert W. Baird downgraded NKE from "Buy" to "Neutral" with an $85 price target. The firm noted that a stronger U.S. dollar and weaker growth in China are eating into the company's margins.

Sterne Agee Gets "Neutral" Too
Sterne Agee also lowered their rating on NKE to "Neutral" and cut their earnings estimates, citing slowing growth, particularly in China.

Nike Also Downgraded at DA Davidson
Finally, DA Davidson cut their rating on NKE to "Neutral" with a $93 price target. The analyst said Nike faces several growth headwinds along with lowered guidance.

Nike shares fell $10.89, or -11%, in premarket trading Friday.

The Bottom Line
Shares of Nike ( NKE ) have a 1.49% dividend yield, based on last night's closing stock price of $96.89. The stock has technical support in the $90-$93 price area, but if that fails to hold as it appears, the next area of support is around the $83-$85 price levels.

Nike, Inc. ( NKE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: NKE



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