JPMorgan analyst Matthew R. Boss flagged several troubling signs for Nike Inc (NYSE:NKE), which may have investors tightening their seatbelts.
Boss maintains a neutral rating with a price target of $77 for December 2025 on Nike stock. His insights from the filing reveal potential challenges that could impact Nike’s growth trajectory.
Ominous Omission: Supply Chain Concerns
A significant red flag Boss noticed in Nike’s latest 10-Q filing is the absence of the "Supply Chain Conditions" reference, a staple in previous quarterly filings. This omission suggests a departure from previously reassuring statements about inventory health.
Boss points out that while Nike reported a 5% decline in inventories, revenues fell by 10%, indicating a widening gap that investors should watch closely.
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