Breaking Down Nike: 14 Analysts Share Their Views

14 analysts have expressed a variety of opinions on Nike NKE over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Nike, presenting an average target of $120.71, a high estimate of $140.00, and a low estimate of $104.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 1.86%.

Analyzing Analyst Ratings: A Detailed Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive Nike. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Nike. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Nike compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Nike's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Nike's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Nike analyst ratings.

All You Need to Know About Nike

Nike is the largest athletic footwear and apparel brand in the world. Key categories include basketball, running, and football (soccer). Footwear generates about two thirds of its sales. Its brands include Nike, Jordan, and Converse (casual footwear). Nike sells products worldwide through company-owned stores, franchised stores, and third-party retailers. The firm also operates e-commerce platforms in more than 40 countries. Nearly all its production is outsourced to contract manufacturers in more than 30 countries. Nike was founded in 1964 and is based in Beaverton, Oregon.

Understanding the Numbers: Nike's Finances

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Nike's revenue growth over a period of 3 months has been noteworthy. As of 30 November, 2023, the company achieved a revenue growth rate of approximately 0.55%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Nike's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 11.79% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Nike's ROE excels beyond industry benchmarks, reaching 11.22%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Nike's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 4.27%, the company showcases efficient use of assets and strong financial health.

Debt Management: Nike's debt-to-equity ratio is below the industry average. With a ratio of 0.86, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: What Are They?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.