Cramer Backs Nike Turnaround as Shares Rise Despite Fresh Downgrade

Overview

• Cramer said there is a lot of value in Nike and that he wants to invest alongside Tim Cook and Elliott Hill.
• He argued North America has improved even as Greater China remains highly problematic.
• Needham downgraded Nike to Hold from Buy, flagging a slower-than-expected turnaround, wholesale sell-in concerns, and elevated Street estimates.
• Nike shares closed up more than 3% on the day of the downgrade.
• Late-December open-market purchases by Hill, Tim Cook (about $3 million), and another director became a key bullish talking point, and RBC later cut its target to $78 while maintaining an Outperform rating.