a valuable oversold company!!! (Long)

2 окт. 2022 г.

Strong consumer demand has been the main source of confidence in the world's largest economy in the post-pandemic environment. Even as the Federal Reserve embarked on its most aggressive monetary tightening cycle in decades, many economists argued that a soft landing was still possible, given significant pent-up demand for consumer goods such as shoes, clothing and cars.

But yesterday's report from Nike (NYSE:NKE) revealed that the strongest pillar of the US economy could be in jeopardy as consumers face a double whammy in the form of high inflation and rising interest rates. }}.

The world's largest sporting goods company told investors yesterday that it is grappling with a huge pile of unsold products, forcing it to offer aggressive discounts and squeeze margins.

On Thursday, the Oregon-based company said global inventories had risen 44% to $9.7 billion in the quarter ended Aug. 30. In North America, the company's largest market, they increased 65% compared to the previous year, mainly due to slowing demand and delayed shipments.

In this context, Nike will see its margins erode, falling between 200 and 250 basis points this fiscal year; the previous estimate was that margins would remain flat or decline by 50 basis points, at most.

The company's minimum considering targets on Wallstreet is $88 according to Tipranks. which the average cost of the shares is $114.

then we set the next objectives to follow according to the profitability of the company. (Let's go long).


Objectives:

tp1-$93
tp2-$103
tp3-$113