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.