Barclays Sees Shareholders Benefiting From Nike's (NKE) Decision to Divest Umbro and Cole Haan
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Price: $62.79 -0.85%
Rating Summary:
14 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
14 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
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Barclays maintains an 'Overweight' on Nike (NYSE: NKE) price target of $125.00.
Analyst, Robert S. Drbul, said, "Nike announced plans to divest two of its affiliate brands, Cole Haan and Umbro, by the end of FY13 (May 31, 2013), with the intention of re-focusing on the growth of its remaining brands, NIKE Brand, Jordan, Converse and Hurley. In FY11, Cole Haan and Umbro generated $518 mm and $224 mm in revenues, respectively, or 4% of Nike's total revenue."
"The company purchased Cole Haan in 1988 for $80 mm (and repaid $15 mm in debt), and Umbro in 2008 for $582 mm. While still early, the process of reviewing strategic options, we expect that the use of proceeds from a potential sale would remain in line with the company's current strategy for uses of cash: (1) investments that drive ROI and value to shareholders; (2) dividends; and (3) share repurchase."
For an analyst ratings summary and ratings history on Nike click here. For more ratings news on Nike click here.
Shares of Nike closed at $108.18 yesterday, with a 52 week range of $76.98-$114.81.
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Analyst, Robert S. Drbul, said, "Nike announced plans to divest two of its affiliate brands, Cole Haan and Umbro, by the end of FY13 (May 31, 2013), with the intention of re-focusing on the growth of its remaining brands, NIKE Brand, Jordan, Converse and Hurley. In FY11, Cole Haan and Umbro generated $518 mm and $224 mm in revenues, respectively, or 4% of Nike's total revenue."
"The company purchased Cole Haan in 1988 for $80 mm (and repaid $15 mm in debt), and Umbro in 2008 for $582 mm. While still early, the process of reviewing strategic options, we expect that the use of proceeds from a potential sale would remain in line with the company's current strategy for uses of cash: (1) investments that drive ROI and value to shareholders; (2) dividends; and (3) share repurchase."
For an analyst ratings summary and ratings history on Nike click here. For more ratings news on Nike click here.
Shares of Nike closed at $108.18 yesterday, with a 52 week range of $76.98-$114.81.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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