UPDATE: Jefferies Color on Nike Initiation

Jefferies, which initiated coverage of Nike NKE, is providing some color on the stock. “We like Nike for its dominant global market leadership position in an athletic category that has both cyclical and secular tailwinds,” Jefferies writes. “Other attributes of note include a $4 billion net cash balance, a home-grown management team, and sizable emerging market exposure. Gross margin headwinds are a near-term drag but now appear priced in and poised to positively inflect 6-9 months from now.” Nike closed Thursday at $81.15.