Nike Missed On Top Line, But Analysts Still Bullish On The Swoosh

Nike Inc NKE reported Q4 EPS of $0.55, topping consensus expectations of $0.49. The company also reported Q4 revenue of $8.0 billion, slightly below consensus expectations of $8.2 billion.

Nike shares are down about 4.5 percent in early Wednesday trading, but the revenue miss didn’t dampen Wall Street’s spirits when it comes to Nike. Here’s a look at what nine top firms have to say about Nike following its report.

Jefferies

Analyst Edward Plank said, “Strong underlying demand coupled with a compelling slate of new product innovations and sporting events over the course of the year continue to fuel our optimism.”

Jefferies maintains its Buy rating but has lowered its price target from $76 to $74.

Stifel

Analyst Jim Duffy remains “confident in sightlines to high single/low double-digit revenue growth and margin expansion in FY17 and we continue to view NIKE as a solid core holding for long-term investors.”

Stifel maintains its Buy rating and $73 price target.

Related Link: One Analyst Didn't Like Nike's Results, Says Futures Are Becoming Irrelevant Predictors Of Growth

Bank of America

Analyst Robert Ohmes noted, “Nike shares reacted negatively to guidance in aftermarket trading, however, we believe the outlook is conservative.”

Bank of America maintains its Buy rating and $72 price target.

Brean Capital

Analyst Eric Tracy continues to believe “visibility into ongoing fundamental strength remains high, with our positive view predicated on 1) multiple growth levers that support strong visibility to continued top-line momentum (supported by recent innovation pipeline refresh) and 2) structural drivers including DTC/Int’l mix shifts and supply chain benefits that drive accretive growth.”

Brean maintains its Buy rating and $74 price target.

Morgan Stanley

Analyst Jay Sole expects “mid-teens growth continuing through FY20.”

Morgan Stanley maintains an Overweight rating and $69 price target.

Goldman Sachs

Analyst Lindsay Mann said Nike “remains an outlier among mega-cap consumer stocks with another quarter of 20+ percent EPS growth.”

The firm maintains a Buy rating and $76 price target.

Barclays

Analyst Matthew McClintock believes “a continuation of strong futures, particularly strong ASPs, are indicative of robust growth ahead” and calls any post-earnings dip in the stock “an attractive buying opportunity.”

Barclays maintains a Buy rating but lowered its price target from $150 to $75.

Credit Suisse

Analyst Christian Buss continues to view Nike as “an exceptional executor within the maturing athletic market” and sees “the potential for double-digit earnings growth to be sustained going forwards.” 

Credit Suisse maintains a Buy rating and has raised its price target from $67 to $68.

JPMorgan

Analyst Matthew Boss noted, “Importantly, NKE repurchased 35.4 million shares for $2.1 billion in 3Q – the largest quarterly buyback to date historically – concluding its former $8 billion program and leaving $11.4 billion remaining under its $12 billion 4-year authorization.”

JPMorgan maintains its Overweight rating and $72 price target.

Disclosure: The author holds no position in the stocks mentioned.

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