Zacks Investment Research downgraded shares of Nike Inc. (NKE) from OUTPERFORM to NEUTRAL on December 31, 2014, with a target price of $102.00.
We remain impressed with Nike's strong growth and product innovation that have facilitated consistent positive earnings surprises for 10 straight quarters, alongside strong revenue growth. The company also boasts a robust financial status, as is evident from its recent dividend hike. Nike aims to increase its global reach and market share by expanding its operations in the emerging markets, while focusing on direct-to-consumer business and other brands. However, we remain slightly uncertain about the company's future owing to unfavorable currency fluctuations coupled with the impact of recent currency devaluation in the developing markets. Further, soft future orders and macroeconomic headwinds may undermine Nike's future prospects. Hence, we downgraded our recommendation on the stock to Neutral.
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