Nike Has Attractive Long Term Growth Opportunities, Can Offer Conservative Future Guidance

Analysts at Citigroup reiterate their "buy" rating on Nike Inc NKE. The target price for NKE is set to $86. Citigroup continues to be optimistic about NKE’s attractive long-term growth opportunities. The analysts have, however, removed NKE from Citi’s Top Picks Live as they believe “the co’s guidance could be cautious due to Europe’s macroeconomic volatility/uncertainty and resulting unfavorable F/X impact which could result in the stock trading in a tight range in the near term.” NKE is set to report its Q4 results on June 22. “We expect EPS to be driven by ~+8% top-line growth as NKE laps its easiest sales comparison of year of down -7.4%... In the past NKE mgmt has provided directional guidance (vs. EPS) for the following FY when announcing Q4 results. In our view, NKE management was positive on prospects when the company held its investor day on May 5th.. We expect the top line to continue to benefit from the strong athletic trend we are seeing in footwear as a result of the possible halo effect from toning and the strength in the running category,” the analysts mention. More Analyst Ratings here