Estimates and PT Raised On Nike Over Two Phonecalls

Citigroup has published a report on Nike, Inc. NKE and has raised EPS estimates on the company's 2Q based on better revenues. In the report, Citigroup writes "For 2Q we raise EPS to $0.88 on better revs. (from $0.85) vs. street's $0.86 yielding ‘11 $4.52 (vs. street's $4.39) or ~+13c above. We reiterate NKE Buy on LT growth opportunities with renewed apparel growth, strength in DTC, & supply chain/efficiencies. Based on 2 conf calls we conducted with Anta Sports and the world's biggest shoe manuf. (Yue Yuen); we believe NKE will demonstrate: (1) strong rev trend/order book momentum in China, (2) continued ASP increases, (3) healthy inventory levels/promotional levels, & (4) have innovative product cost control strategies which involve using simpler designs/backwards engineering product/consolidating factory relationships. Please see our notes 12/1/10 Anta Sports & 12/8/10 Yue Yuen." Citigroup has also raises the price target from $91 to $95. Nike, Inc. closed yesterday at $87.19.