Analysts cautious about Nike's future
today Jan 30, 2017
Analysts have expressed concerns over the potential damage Trump's new trade laws could do to the American sportswear giant.
"With dozens of contract manufacturing plants, mostly in Asia, Nike is a massive importer,” said analyst Nathan Yates in a note to Seeking Alpha. “We are concerned about potential tariffs on the company’s goods brought into the U.S. A strong dollar created by Trumponomics is another risk.”
Analyst firm Forward View thinks that Nike will not hold its power with the incoming Trump administration. Currently, Nike earns 53% of its revenue from outside of the US, and manufactures almost every single product outside the United States, the latter posing a problem to President Trump’s push to up USA-based manufacturing.
Of the 34 investment firms on Wall Street who cover Nike, 21 have issued a Buy rating. 11 firms have a hold rating.
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