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<Research>BOCI Downgrades Sportswear Sector to Neutral on Weaker Earnings Visibility
Recommend 19 Positive 9 Negative 22 |
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Despite signs of easing tensions in the US-Iran conflict, BOCI has adopted a more cautious view on the earnings outlook for most sportswear companies in 2026, the broker's research report said. Particularly, BOCI has further lowered its forecasts for companies associated with NIKE (NKE.US), seeing that the earnings recovery path of the sportswear powerhouse appears more challenging than expected. In BOCI's estimation, the earnings visibility for sportswear companies will plunge in the short term (at least before the interim results in August) due to: 1) a potential impact from high oil prices on demand; and 2) possible increases in manufacturing costs. Within its coverage, BOCI currently favors LI NING (02331.HK), whose results performance appears to be showing signs of bottoming out and rebounding. In contrast, the broker remains more conservative on SHENZHOU INTL (02313.HK) and TOPSPORTS (06110.HK). BOCI has downgraded the rating of the sportswear industry from Overweight to Neutral. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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