Williams downgrades Nike to Sell ahead of expected guidance cut

Williams Trading analyst Sam Poser last night downgraded Nike to Sell from Hold with a price target of $85, down from $92. “Nike’s strength continues to diminish,” the analyst tells investors in a research note. The firm believes “consultants, rather than Nike experts are leading strategy decisions, senior leaders are too dogmatic, and do not welcome all opinions.” Williams thinks Nike will report a slight miss in fiscal Q3 and its fiscal 2024 guidance will be cut once again. The firm believes the company does not deserve its historic multiple “as many of the franchises, whose successes contributed to that multiple, are losing their luster.”