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Nike downgraded amid US wholesale pressures, China risks: 4 big analyst cuts.

By Davit Kirakosyan |

© Reuters.

Here is your Pro Recap of the biggest analyst cuts you may have missed since Friday: downgrades at Nike, Harmony Biosciences, Foot Locker , and Plains All American.

Nike slashed to Hold at Jefferies

Nike (NYSE:NKE) shares fell more than 1% pre-market today after Jefferies downgraded the company to Hold from Buy and cut its price target to $100.00 from $140.00, as reported in real-time on InvestingPro.

Jefferies cited increased risk due to ongoing pressure on the wholesale channel and macroeconomic challenges in China. Additionally, their consumer survey results suggest reduced spending in the US, particularly in apparel and footwear.

The company is set to report its Q1/24 earnings results on Sept 28, after the market close.

Harmony Biosciences shares drop on Goldman Sachs downgrade

Goldman Sachs downgraded Harmony Biosciences (NASDAQ:HRMY) to Sell from Neutral and cut its price target to $31.00 from $40.00. As a result, shares dropped more than 3% pre-market today.

“We see multiple emerging risks to the durability of HRMY revenue, as derived exclusively via Wakix sales,” noted the firm. These risks include potential competition from candidates in clinical development, regulatory protection issues due to expired patents, and patent-related uncertainty in the 2027-2030 timeframe, resulting in a potential 30% downside to Wakix sales in 2023-2032.

“With respect to the proposed acquisition of ZYNE, we highlight significant limitations in the clinical data presented to-date which present numerous questions for the program outlook,” added Goldman Sachs.

Two more downgrades

Jefferies downgraded Foot Locker (NYSE:FL) to Hold from Buy and cut its price target to $18.00 from $28.00. As a result, shares fell more than 2% pre-market today.

Barclays downgraded Plains All American Pipeline (NASDAQ:PAA) to Underweight from Equalweight with a price target of $15.00.

Barclays expressed caution regarding the company's recontracting outlook and the utilization of its assets in the medium to long term. While acknowledging the company's critical infrastructure assets and unitholder-friendly capital allocation framework, Barclays believes that the company's positive aspects are overly reflected in its valuation.


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