BUZZ - Berenberg downgrades Nike rating to "Sell", stock price falls

October 6 - ** Shares of sports apparel company Nike (NKE.N) fell about 1% in premarket trading, at $33.58

** Berenberg Securities downgraded the stock from "Buy" to "Sell," and lowered the target price from $49 to $27.50

** Analyst Nick Anderson stated: "Nike appears to have accepted its declining position in sports apparel," noting that the company plans to restructure its sports apparel business around a smaller set of categories, which is interpreted as an acknowledgment that the market structure has "irreversibly" shifted to Nike's disadvantage

** The brokerage expects revenue pressure through the fiscal year 2028, management appears fatigued, and the "Pace" restructuring plan is unlikely to provide substantial support before fiscal 2029; it also pointed out that recovery in the Chinese market is "not a certainty"

** Prior to this downgrade, S&P Global had on Monday (link) downgraded its credit rating on the stock from "A+" to "A" and gave it a "negative outlook," stating the company's turnaround efforts (link) would require more time and larger investments

** Of the 44 brokerages, 11 gave the stock a "Buy" or higher rating, 25 gave it a "Hold," and 8 gave a "Sell" or lower rating; the median target price is $34.90—data compiled by London Stock Exchange Group (LSEG)

** As of the previous session’s close, the stock had fallen about 47% year-to-date

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