0942 GMT - Topsports International is unlikely to see a business turnaround in the short term, Deutsche Bank Research analyst Jessie Xu says in a research note. The company, the Chinese distributor for Nike and Adidas, has prioritized inventory clearance in the past few quarters, but the inventory structure isn't yet ideal, as new arrivals and new brands aren't enough to offset discount pressure from old inventory, Xu says, citing management's remarks. The bank cuts its fiscal year 2026-2027 earnings estimates by 10%-19% to factor in weaker-than-expected short-term guidance and a later turnaround for its Nike business. Deutsche Bank downgrades the stock to hold from buy and cuts its target price to HK$3.30 from HK$3.50. Shares closed at HK$2.80. (tracy.qu@wsj.com)
(END) Dow Jones Newswires
May 23, 2025 05:42 ET (09:42 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.