Nike (NKE) PT Rises To $91 At Nomura On Upside But Apparel Disappoints

Nomura/Instinet analyst, Simeon Siegel, reiterated his Buy on Nike (NYSE: NKE) and raised his price target to $91.00 (from $85.00) despite shares slipping on a North American Apparel miss. NA sales growth of ~7% was below the analyst's ~10% estimate, as Apparel underperformed due in part to timing shifts.

The analyst seems to wonder if incremental spending is having diminishing results stating "Demand Creation was ~flat (lowest growth in years & second Q of leverage since 1Q18), as we wonder if NKE is simply reaching a size too difficult to outspend (a similar argument we have been making for AMZN). Overhead grew, driven by wage-related expenses for transformational initiatives."

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 $84.25 yesterday.

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