Earlier this week, Kontoor Brands, was initiated by analysts at Bank of America.
"A potential 25% tariff on Mexican imports into the US is a risk, especially if Kontoor can't pass through price. The company owns manufacturing facilities in Mexico, and we estimate that it would need to raise US prices by 5% to offset the EPS impact from a 25% tariff," the firm said. Kontoor is the maker of Lee and Wrangler brand jeans and is rated underperform by Bank of America.
The makers of medical devices would also be in danger from any kind of tariff due to U.S. imports, according to analysts.It's a "half-baked POTUS tweet on Mexico," analyst Jason Mills, who covers buy-rated Merit Medical Systems at Canaccord Genuity, said in a note. "Furthermore, while the lack of detail from the President around specifics is frustrating, we think it is unlikely further details materialize ahead of the President's texted June 10 'deadline' and view the deadline as soft at best," he said. "Regardless, we view the weakness in MMSI common providing an attractive entry point in the low 50s and would accumulate.
"The proposed U.S.-Mexico tariffs, expected to be implemented on June 10th at 5% and increasing to 25% by October, will have a significant impact on the North American lighting industry. While compromise is still our base case, we think it is prudent to try to frame the potential impact if tariffs move forward. Importantly, several tier 1 lighting OEMs use Mexico as a manufacturing base, thus creating a collective industry impact which we think can result in pricing discipline.
Trump is manipulating the stock market!
Singapore Singapore Latest News, Singapore Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNBC - 🏆 12. / 72 Read more »