Goldman upgrades Nike to buy: ‘On the cusp of a sharp acceleration’

Goldman Sachs upgraded Nike on Thursday and said it saw the company as a “unique asset” with China as a “key driver of growth.” The firm upgraded the company to buy from neutral and added the stock to its conviction buy list. Goldman also raised its price target to $112 from $95. Shares of Nike are up 2.30% to $95.88 in premarket trading. “We believe Nike is on the cusp of a sharp acceleration in EPS growth,” Goldman Sachs analyst Alexandra Walvis said.


Goldman Sachs upgraded Nike on Thursday and said it saw the company as a “unique asset” with China as a “key driver of growth.”
The firm upgraded the company to buy from neutral and added the stock to its conviction buy list.
Goldman also raised its price target to $112 from $95.
Shares of Nike are up 2.30% to $95.88 in premarket trading.
“We believe Nike is on the cusp of a sharp acceleration in EPS growth,” Goldman Sachs analyst Alexandra Walvis said.
Goldman upgrades Nike to buy: ‘On the cusp of a sharp acceleration’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: michael bloom
Keywords: news, cnbc, companies, nike, cusp, growth, china, acceleration, goldman, upgraded, sharp, firm, walvis, sachs, upgrades, company, buy


Goldman upgrades Nike to buy: 'On the cusp of a sharp acceleration'

Goldman Sachs upgraded Nike on Thursday and said it saw the company as a “unique asset” with China as a “key driver of growth.”

The firm upgraded the company to buy from neutral and added the stock to its conviction buy list. Goldman also raised its price target to $112 from $95.

Shares of Nike are up 2.30% to $95.88 in premarket trading.

“We believe Nike is on the cusp of a sharp acceleration in EPS growth,” Goldman Sachs analyst Alexandra Walvis said. The firm also said it sees earnings growing 19% annually over the next 3 years and that China should help accelerate that growth at “almost 3x the rate of other regions.”


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: michael bloom
Keywords: news, cnbc, companies, nike, cusp, growth, china, acceleration, goldman, upgraded, sharp, firm, walvis, sachs, upgrades, company, buy


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Goldman upgrades Nike to buy: ‘On the cusp of a sharp acceleration’

Goldman Sachs upgraded Nike on Thursday and said it saw the company as a “unique asset” with China as a “key driver of growth.” The firm upgraded the company to buy from neutral and added the stock to its conviction buy list. Goldman also raised its price target to $112 from $95. Shares of Nike are up 2.30% to $95.88 in premarket trading. “We believe Nike is on the cusp of a sharp acceleration in EPS growth,” Goldman Sachs analyst Alexandra Walvis said.


Goldman Sachs upgraded Nike on Thursday and said it saw the company as a “unique asset” with China as a “key driver of growth.”
The firm upgraded the company to buy from neutral and added the stock to its conviction buy list.
Goldman also raised its price target to $112 from $95.
Shares of Nike are up 2.30% to $95.88 in premarket trading.
“We believe Nike is on the cusp of a sharp acceleration in EPS growth,” Goldman Sachs analyst Alexandra Walvis said.
Goldman upgrades Nike to buy: ‘On the cusp of a sharp acceleration’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: michael bloom
Keywords: news, cnbc, companies, nike, cusp, growth, china, acceleration, goldman, upgraded, sharp, firm, walvis, sachs, upgrades, company, buy


Goldman upgrades Nike to buy: 'On the cusp of a sharp acceleration'

Goldman Sachs upgraded Nike on Thursday and said it saw the company as a “unique asset” with China as a “key driver of growth.”

The firm upgraded the company to buy from neutral and added the stock to its conviction buy list. Goldman also raised its price target to $112 from $95.

Shares of Nike are up 2.30% to $95.88 in premarket trading.

“We believe Nike is on the cusp of a sharp acceleration in EPS growth,” Goldman Sachs analyst Alexandra Walvis said. The firm also said it sees earnings growing 19% annually over the next 3 years and that China should help accelerate that growth at “almost 3x the rate of other regions.”


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: michael bloom
Keywords: news, cnbc, companies, nike, cusp, growth, china, acceleration, goldman, upgraded, sharp, firm, walvis, sachs, upgrades, company, buy


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Facebook and Alphabet upgraded by Stifel on advertising optimism

Stifel is betting on Facebook and Alphabet as businesses increasingly spend more on advertising both in the U.S. and abroad. The firm upgraded shares of Google’s parent company Alphabet and social media giant Facebook to buy from hold. Stifel hiked its price target for Alphabet to $1,525 from $1,325, a 14% upside to the stock’s closing price on Wednesday. Stifel raised Facebook’s price target to $240 from $215, a 20% upside from Wednesday’s closing price. U.S. advertising spending continues to o


Stifel is betting on Facebook and Alphabet as businesses increasingly spend more on advertising both in the U.S. and abroad.
The firm upgraded shares of Google’s parent company Alphabet and social media giant Facebook to buy from hold.
Stifel hiked its price target for Alphabet to $1,525 from $1,325, a 14% upside to the stock’s closing price on Wednesday.
Stifel raised Facebook’s price target to $240 from $215, a 20% upside from Wednesday’s closing price.
U.S. advertising spending continues to o
Facebook and Alphabet upgraded by Stifel on advertising optimism Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, advertising, growth, upgraded, price, target, optimism, spend, facebook, upside, stifel, alphabet, firm


Facebook and Alphabet upgraded by Stifel on advertising optimism

Stifel is betting on Facebook and Alphabet as businesses increasingly spend more on advertising both in the U.S. and abroad.

The firm upgraded shares of Google’s parent company Alphabet and social media giant Facebook to buy from hold. Stifel hiked its price target for Alphabet to $1,525 from $1,325, a 14% upside to the stock’s closing price on Wednesday. Stifel raised Facebook’s price target to $240 from $215, a 20% upside from Wednesday’s closing price.

U.S. advertising spending continues to outpace GDP growth and since the last recession, growth in global advertising spend has remained steady around 5% year-over-year, the firm noted.


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, advertising, growth, upgraded, price, target, optimism, spend, facebook, upside, stifel, alphabet, firm


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Facebook and Alphabet upgraded by Stifel on advertising optimism

Stifel is betting on Facebook and Alphabet as businesses increasingly spend more on advertising both in the U.S. and abroad. The firm upgraded shares of Google’s parent company Alphabet and social media giant Facebook to buy from hold. Stifel hiked its price target for Alphabet to $1,525 from $1,325, a 14% upside to the stock’s closing price on Wednesday. Stifel raised Facebook’s price target to $240 from $215, a 20% upside from Wednesday’s closing price. U.S. advertising spending continues to o


Stifel is betting on Facebook and Alphabet as businesses increasingly spend more on advertising both in the U.S. and abroad.
The firm upgraded shares of Google’s parent company Alphabet and social media giant Facebook to buy from hold.
Stifel hiked its price target for Alphabet to $1,525 from $1,325, a 14% upside to the stock’s closing price on Wednesday.
Stifel raised Facebook’s price target to $240 from $215, a 20% upside from Wednesday’s closing price.
U.S. advertising spending continues to o
Facebook and Alphabet upgraded by Stifel on advertising optimism Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, advertising, growth, upgraded, price, target, optimism, spend, facebook, upside, stifel, alphabet, firm


Facebook and Alphabet upgraded by Stifel on advertising optimism

Stifel is betting on Facebook and Alphabet as businesses increasingly spend more on advertising both in the U.S. and abroad.

The firm upgraded shares of Google’s parent company Alphabet and social media giant Facebook to buy from hold. Stifel hiked its price target for Alphabet to $1,525 from $1,325, a 14% upside to the stock’s closing price on Wednesday. Stifel raised Facebook’s price target to $240 from $215, a 20% upside from Wednesday’s closing price.

U.S. advertising spending continues to outpace GDP growth and since the last recession, growth in global advertising spend has remained steady around 5% year-over-year, the firm noted.


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, advertising, growth, upgraded, price, target, optimism, spend, facebook, upside, stifel, alphabet, firm


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NATO needs to change to survive, analysts say

LONDON — As NATO members gather in the U.K. to celebrate 70 years since its inception, there are pressing questions about the organization’s future and its relevance on the global landscape. NATO was created in the aftermath of World War II with the overall aim to protect its members against any threats posed by the Soviet Union. U.S. officials have expressed concern over the company’s links to the Chinese government and the security threat it could pose — something which the Shenzhen-based tech


LONDON — As NATO members gather in the U.K. to celebrate 70 years since its inception, there are pressing questions about the organization’s future and its relevance on the global landscape.
NATO was created in the aftermath of World War II with the overall aim to protect its members against any threats posed by the Soviet Union.
U.S. officials have expressed concern over the company’s links to the Chinese government and the security threat it could pose — something which the Shenzhen-based tech
NATO needs to change to survive, analysts say Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-04  Authors: silvia amaro
Keywords: news, cnbc, companies, members, survive, change, needs, tech, say, president, posed, nato, taking, global, firm, analysts


NATO needs to change to survive, analysts say

BRUSSELS, BELGIUM – JULY 11: Heads of state and government, including French President Emmanuel Macron (7th L), German Chancellor Angela Merkel (8th L), U.S. President Donald Trump, British Prime Minister Theresa May (5th R), and Turkish President Recep Tayyip Erdogan (3rd R), mingle after posing for a family picture during the opening ceremony at the 2018 NATO Summit at NATO headquarters on July 11, 2018 in Brussels, Belgium.

LONDON — As NATO members gather in the U.K. to celebrate 70 years since its inception, there are pressing questions about the organization’s future and its relevance on the global landscape.

Leslie Vinjamuri, the head of the U.S. and the Americas Programme at think tank Chatham House, believes there will now be “several years of grappling” to reform the military alliance.

She added that one of the main issues is that the institution is not set up to deal with the current geopolitical landscape. NATO was created in the aftermath of World War II with the overall aim to protect its members against any threats posed by the Soviet Union.

But the rise of the world’s second-largest economy, China, has posed new challenges to the West and trade and political tensions between Beijing and Washington have come to the fore in the last two years. The disagreements have involved the tech sector with the U.S. taking steps to ban the Chinese firm Huawei from selling its technology in the United States.

U.S. officials have expressed concern over the company’s links to the Chinese government and the security threat it could pose — something which the Shenzhen-based tech firm has denied. This issue has sparked division within NATO allies, with Germany and France taking a different stance to the U.S. administration.

“NATO is at a crossroads,” Agathe Demarais, global forecasting director at the research firm The Economist Intelligence Unit (EIU), highlighted to CNBC Monday.


Company: cnbc, Activity: cnbc, Date: 2019-12-04  Authors: silvia amaro
Keywords: news, cnbc, companies, members, survive, change, needs, tech, say, president, posed, nato, taking, global, firm, analysts


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UBS recommends these dividend growers to combat a slowing economy, tougher market

A trader, center, wears a Citigroup jacket while working on the floor of the New York Stock Exchange. U.S. stock markets are near record high levels and UBS strategists are predicting a continued slowdown in the economy, which the firm expects will pressure the S&P 500 until the middle of next year. So the firm gave clients a list of dividend stocks it believe will outperform in this environment. “To help investors navigate this uncertain environment, and to sort through the many ways of looking


A trader, center, wears a Citigroup jacket while working on the floor of the New York Stock Exchange.
U.S. stock markets are near record high levels and UBS strategists are predicting a continued slowdown in the economy, which the firm expects will pressure the S&P 500 until the middle of next year.
So the firm gave clients a list of dividend stocks it believe will outperform in this environment.
“To help investors navigate this uncertain environment, and to sort through the many ways of looking
UBS recommends these dividend growers to combat a slowing economy, tougher market Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-04  Authors: michael sheetz
Keywords: news, cnbc, companies, firm, wears, stock, market, combat, york, growers, slowing, dividend, economy, working, tougher, recommends, stocks, ubs, yield, weve


UBS recommends these dividend growers to combat a slowing economy, tougher market

A trader, center, wears a Citigroup jacket while working on the floor of the New York Stock Exchange.

U.S. stock markets are near record high levels and UBS strategists are predicting a continued slowdown in the economy, which the firm expects will pressure the S&P 500 until the middle of next year. So the firm gave clients a list of dividend stocks it believe will outperform in this environment.

“To help investors navigate this uncertain environment, and to sort through the many ways of looking at dividends, we’ve run a series of screens on U.S. stocks covered by UBS analysts,” the firm said.

UBS looked at stocks it has a buy rating on, with a current dividend yield greater than 1% and a forecast for strong dividend growth over the next three years.


Company: cnbc, Activity: cnbc, Date: 2019-12-04  Authors: michael sheetz
Keywords: news, cnbc, companies, firm, wears, stock, market, combat, york, growers, slowing, dividend, economy, working, tougher, recommends, stocks, ubs, yield, weve


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UBS recommends these dividend growers to combat a slowing economy, tougher market

A trader, center, wears a Citigroup jacket while working on the floor of the New York Stock Exchange. U.S. stock markets are near record high levels and UBS strategists are predicting a continued slowdown in the economy, which the firm expects will pressure the S&P 500 until the middle of next year. So the firm gave clients a list of dividend stocks it believe will outperform in this environment. “To help investors navigate this uncertain environment, and to sort through the many ways of looking


A trader, center, wears a Citigroup jacket while working on the floor of the New York Stock Exchange.
U.S. stock markets are near record high levels and UBS strategists are predicting a continued slowdown in the economy, which the firm expects will pressure the S&P 500 until the middle of next year.
So the firm gave clients a list of dividend stocks it believe will outperform in this environment.
“To help investors navigate this uncertain environment, and to sort through the many ways of looking
UBS recommends these dividend growers to combat a slowing economy, tougher market Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-04  Authors: michael sheetz
Keywords: news, cnbc, companies, firm, wears, stock, market, combat, york, growers, slowing, dividend, economy, working, tougher, recommends, stocks, ubs, yield, weve


UBS recommends these dividend growers to combat a slowing economy, tougher market

A trader, center, wears a Citigroup jacket while working on the floor of the New York Stock Exchange.

U.S. stock markets are near record high levels and UBS strategists are predicting a continued slowdown in the economy, which the firm expects will pressure the S&P 500 until the middle of next year. So the firm gave clients a list of dividend stocks it believe will outperform in this environment.

“To help investors navigate this uncertain environment, and to sort through the many ways of looking at dividends, we’ve run a series of screens on U.S. stocks covered by UBS analysts,” the firm said.

UBS looked at stocks it has a buy rating on, with a current dividend yield greater than 1% and a forecast for strong dividend growth over the next three years.


Company: cnbc, Activity: cnbc, Date: 2019-12-04  Authors: michael sheetz
Keywords: news, cnbc, companies, firm, wears, stock, market, combat, york, growers, slowing, dividend, economy, working, tougher, recommends, stocks, ubs, yield, weve


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Kamala Harris cancels big-money fundraiser at New York law firm amid reports of campaign turmoil

Sen. Kamala Harris has canceled a high-profile New York fundraiser as she drops in the polls and amid reports that her 2020 presidential campaign is in disarray. Neither a spokesperson for the Harris campaign nor executives on the finance committee returned requests for comment. The Washington Post and The New York Times published stories last week depicting disarray in the Harris campaign. The Times reported that Harris’ sister Maya Harris and her campaign manager Juan Rodriguez were getting mo


Sen. Kamala Harris has canceled a high-profile New York fundraiser as she drops in the polls and amid reports that her 2020 presidential campaign is in disarray.
Neither a spokesperson for the Harris campaign nor executives on the finance committee returned requests for comment.
The Washington Post and The New York Times published stories last week depicting disarray in the Harris campaign.
The Times reported that Harris’ sister Maya Harris and her campaign manager Juan Rodriguez were getting mo
Kamala Harris cancels big-money fundraiser at New York law firm amid reports of campaign turmoil Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-03  Authors: brian schwartz
Keywords: news, cnbc, companies, law, shows, turmoil, reports, campaign, week, york, primary, polls, weiss, harris, presidential, cancels, fundraiser, times, firm, kamala


Kamala Harris cancels big-money fundraiser at New York law firm amid reports of campaign turmoil

Sen. Kamala Harris has canceled a high-profile New York fundraiser as she drops in the polls and amid reports that her 2020 presidential campaign is in disarray.

The event, which was scheduled to take place on Tuesday at the Paul Weiss law firm, was suddenly dropped due to what was described by the campaign as a “personal matter,” according to people familiar with the situation. No date was given for rescheduling. Donors were informed of the decision earlier Tuesday.

An invitation shows that the fundraiser was expected to draw some of Harris’ top bundlers, including hedge fund executive Marc Lasry, financier Blair Effron and Paul Weiss chairman Brad Karp. All three are listed as members of Harris’ finance committee. Also slated to attend was Citigroup executive Ray McGuire and music industry investor Matt Pincus.

Tickets started at $500 and went up to $2,800, which is the maximum a donor can give during a campaign cycle.

Neither a spokesperson for the Harris campaign nor executives on the finance committee returned requests for comment.

The cancellation comes as Harris faces a reckoning in the campaign for the Democratic presidential nomination, six months after she surged into the top tier by taking on front-runner Joe Biden at the first debate of the primary cycle.

The Washington Post and The New York Times published stories last week depicting disarray in the Harris campaign.

The Times reported that Harris’ sister Maya Harris and her campaign manager Juan Rodriguez were getting most of the blame from campaign aides. The report shows aides privately questioning their decision to move most of their resources into the early caucus state of Iowa.

Harris has been slipping in the polls for months and struggling to keep up in the fundraising game.

She finished the third quarter raising just over $11 million, putting her well behind Biden, Sens. Bernie Sanders and Elizabeth Warren and South Bend Mayor Pete Buttigieg.

A Morning Consult poll taken during the week of Thanksgiving had her tied for fifth with the newcomer in the race, billionaire Mike Bloomberg.

A Real Clear Politics polling average has her in sixth place with just 3.4% of the Democratic primary vote, behind Bloomberg and the rest of the field.


Company: cnbc, Activity: cnbc, Date: 2019-12-03  Authors: brian schwartz
Keywords: news, cnbc, companies, law, shows, turmoil, reports, campaign, week, york, primary, polls, weiss, harris, presidential, cancels, fundraiser, times, firm, kamala


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These stocks are ‘best in class’ according to Wall Street analysts

The year may be quickly coming to an end, but according to Wall Street analysts there are some names that still offer plenty of upside heading into the final weeks of 2019 and beyond. Analysts say these stocks represent some of the best there is to offer in their respective industries. CNBC looked at some of the most recent Wall Street research in search of stocks that analysts say present “best-in-class” opportunities for investors. At a time when many of retail’s biggest names are struggling,


The year may be quickly coming to an end, but according to Wall Street analysts there are some names that still offer plenty of upside heading into the final weeks of 2019 and beyond.
Analysts say these stocks represent some of the best there is to offer in their respective industries.
CNBC looked at some of the most recent Wall Street research in search of stocks that analysts say present “best-in-class” opportunities for investors.
At a time when many of retail’s biggest names are struggling,
These stocks are ‘best in class’ according to Wall Street analysts Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-30  Authors: michael bloom
Keywords: news, cnbc, companies, company, bestinclass, say, firm, growth, according, wall, analyst, street, stocks, best, analysts, class, brief


These stocks are 'best in class' according to Wall Street analysts

(This story is part of the Weekend Brief edition of the Evening Brief newsletter. To sign up for CNBC’s Evening Brief, .)

The year may be quickly coming to an end, but according to Wall Street analysts there are some names that still offer plenty of upside heading into the final weeks of 2019 and beyond. Analysts say these stocks represent some of the best there is to offer in their respective industries.

CNBC looked at some of the most recent Wall Street research in search of stocks that analysts say present “best-in-class” opportunities for investors. Stocks include O’Reilly Automotive, The Children’s Place, Rush Enterprises, Guardant Health and Costco.

At a time when many of retail’s biggest names are struggling, there’s one company that continues to impress analysts and investors.

“COST’s strong fundamentals including best-in-class traffic/comps and durable competitive advantages continue to stand out within retail,” Baird said.

The retail giant has a “loyal membership base, and growing omni-channel capabilities,” the firm said.

“COST remains a rare growth staple with still-meaningful growth opportunities.”

Rush Enterprises is another “best-in-class” stock, according to William Blair. The company is a retailer of commercial vehicles, primarily new and used trucks, but the industry may see a downturn next year, the analyst warned.

“The expected 2020 downturn in Class 8 trucks is driven by weaker freight market conditions, overcapacity of the fleet, and declining used truck conditions,” analyst Neil Frohnapple said.

However, the firm actually believes Rush is poised to thrive primarily due to what it calls “best-in-class” management and said investors will be “surprised by the earnings resiliency of the business.”

Guardant Health recently reported third-quarter earnings, which Canacccord Genuity analyst Mark Massaro called “outstanding.”

The company develops blood tests for early detection of cancers and diseases.

The firm said it liked the “longterm strategic thinking and global vision” of Guardant and called the stock a “best-in-its-class growth play.”

Here’s what else analysts say about stocks that are “best in class:”


Company: cnbc, Activity: cnbc, Date: 2019-11-30  Authors: michael bloom
Keywords: news, cnbc, companies, company, bestinclass, say, firm, growth, according, wall, analyst, street, stocks, best, analysts, class, brief


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The ’90s revival is dead for retail, leaving some stock winners and losers: Jefferies

(Credit: NBC/NBCU Photo Bank via Getty Images)The ’90s fashion revival has past its peak. This revival of 1990s consumer tastes put certain brands like Fila and Supreme in the spotlight. The firm sees Zumiez, Guess and Under Armour as stocks that can rally from the death of the decade. Melodie Jeng | Getty ImagesDemand for street-wear and retro brands is slowing, the firm said. Jefferies also said VFC, parent company of shoe retailer Vans, is showing “durability” during the downfall of the ’90s


(Credit: NBC/NBCU Photo Bank via Getty Images)The ’90s fashion revival has past its peak.
This revival of 1990s consumer tastes put certain brands like Fila and Supreme in the spotlight.
The firm sees Zumiez, Guess and Under Armour as stocks that can rally from the death of the decade.
Melodie Jeng | Getty ImagesDemand for street-wear and retro brands is slowing, the firm said.
Jefferies also said VFC, parent company of shoe retailer Vans, is showing “durability” during the downfall of the ’90s
The ’90s revival is dead for retail, leaving some stock winners and losers: Jefferies Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-29  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, firm, fila, getty, brands, stock, guess, retro, leaving, 90s, zumiez, winners, dead, retail, jefferies, losers, stichter, revival


The '90s revival is dead for retail, leaving some stock winners and losers: Jefferies

(Credit: NBC/NBCU Photo Bank via Getty Images)

The ’90s fashion revival has past its peak. Over the last few years, women ditched skinny jeans for the classic Levi’s style, Champion windbreakers flew off shelves and streaming platforms battled for the rights to the hit show “Friends.” This revival of 1990s consumer tastes put certain brands like Fila and Supreme in the spotlight. But now the trend is fading, and as the decade returns to a thing of the past, there will be clear winners and losers, according to Jefferies. The firm sees Zumiez, Guess and Under Armour as stocks that can rally from the death of the decade. “Retailers with exposure to ‘classic’ retro brands with a longer, steadier track record of consumer demand are likely better positioned than those with heavy exposure to pure retro brands that have surged in large part from the ’90s revival,” Jefferies analyst Janine Stichter said in a note to clients on Tuesday.

A guest wears Fila (right) during Milan Men’s Fashion Week Spring/Summer 2019 on June 16, 2018 in Milan, Italy. Melodie Jeng | Getty Images

Demand for street-wear and retro brands is slowing, the firm said. Ahead of Black Friday, the largest brands in the retro space are seeing interest wane and social media engagement weaken. Brands that rode the retro wave like Champion, Supreme, Fila and Off-White are going to struggle, the firm said. Urban Outfitters and Foot Locker are also in a tough spot as they rely heavily on retro style sales from the aforementioned brands. “These brands in particular are no longer driving the buzz they did [last year],” said Stichter. While brands like Zumiez and Guess “are showing relatively better staying power.”

Winners of the fall of the ’90s

Zumiez, Guess and Under Armour are the best-positioned stocks to survive the death of the retro rage, according to Jefferies. While clothing store Zumiez relies heavily on sales of Vans shoes, the retailer is diverse enough to weather a deceleration in the retro cycle, said Stichter, who has a buy rating on Zumiez and a $38 price target. Jefferies also said VFC, parent company of shoe retailer Vans, is showing “durability” during the downfall of the ’90s craze. Zumiez has catered largely to skateboarders, and “data suggests a major resurgence in skateboards/parts, which after many years of decline, could further support current comp momentum,” said Stichter.

(L-R) Yusuf Aktas (Reynmen) and Mehtap Algul attend the J Balvin concert sponsored by Guess at Kucukciftlik Park on July 26, 2019 in Istanbul, Turkey. Levent Kulu | Getty Images Entertainment | Getty Images


Company: cnbc, Activity: cnbc, Date: 2019-11-29  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, firm, fila, getty, brands, stock, guess, retro, leaving, 90s, zumiez, winners, dead, retail, jefferies, losers, stichter, revival


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