Janney Montgomery Scott Maintains a 'Buy' on Nike (NKE); Expect Moderating (But Still Strong) Top Line

June 21, 2012 7:47 AM EDT
Get Alerts NKE Hot Sheet
Price: $52.92 --0%

Rating Summary:
    27 Buy, 11 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
Trade NKE Now!
Join SI Premium – FREE
Janney Montgomery Scott maintains a 'Buy' on Nike (NYSE: NKE) price target of $123.00 (from $127.00).

Analyst, Eric Tracy, said, "Into the NKE 4Q print next week, we remain positively biased on longer-term fundamentals and think near-term risk/reward has improved as sentiment in the name has weakened of late (owing to Europe exposure, chatter on China softening), resulting in too-high competitor estimates being revised downward, which has put pressure on the shares over the last month (NKE off ~4% vs. +5% for S&P). While we expect top line trends to moderate (against stiffening compares and building FX headwinds), the market could over-read this "softening" as an end to cycle/pipeline/global growth - at the quarter, we expect shares to trade on 1) future orders (5-6 month order book) and 2) FY13 EPS guide."

Tracy points to several catalysts including NFL licenses, Summer Olympics, EuroCup, and launch of Nike+ for basketball/training. However, he does lower FY13 EPS outlook from $5.85 to $5.78.

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 $101.20 yesterday.

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

Related Entities

Janney Montgomery Scott, Standard & Poor's

Add Your Comment