Nike Inc NKE just received some more good news from Wall Street.
Sentiment appears to be shifting on the world’s largest sportswear company after a host of upgrades and price target increases over the past week.
Shares have hit a new 52-week high.
The Expert
Scott Krasik of Buckingham Research reiterated a Buy rating and raised the price target from $64 to $71.
The Thesis
Although Nike’s upcoming earnings do not appear to be a catalyst for the stock, Krasik projects that Nike's better-selling new products will scale; markdowns will diminish; and currency headwinds will shift to tailwinds by the second half of the fiscal year. (See Krasik's track record here.)
Potential for greater share repurchases exists if Nike elects to repatriate overseas cash, Krasik said.
“Nike is investing to get closer to its consumer, which is margin-accretive in a digital world; at the same time, advanced manufacturing methods will drive product costs lower. At current levels, we view the risk/reward as favorable,” the analyst said.
Buckingham Research’s channel checks in the second quarter were favorable in North America and China, but the analyst said there is sequential wholesale pressure in Western Europe.
Nike is set to report second-quarter earnings after the close Dec. 21.
Price Action
Nike shares were up slightly at $64.97 at the time of publication.
Related Links:
Nike Appears To Be Finally Turning The Corner; China Spurs Growth
Canaccord Genuity: Foot Locker's Fortunes Are Turning Toward The Upside
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.