Nike (NKE) Management Meeting Indicates Supply Chain Issues are Resolved - Oppenheimer

Oppenheimer analyst Brian Nagel reiterated an Outperform rating and $150.00 price target on Nike (NYSE: NKE) after meeting with management on Friday and learning that the company has already caught up with its distribution problem. If this is the case, recent supply chain-related selloff may be unjustified. Key points from the conversation include:

• Management articulated even more clearly that supply chain issues that began to take hold in later 2020, stemmed from both a lack of shipping containers on the Pacific and congestion at ports located on the West Coast.
• NKE is now “caught up,” with product flowing much more efficiently to wholesale partners and company-operated fulfillment centers.
• Amid supply chain distributions, NKE seemed to prioritize shipments or products to the company’s direct-to-consumer (DTC) channel and key, strategic wholesale partners.
• By all indications, underlying demand for NKE products in the US and elsewhere remains strong and is likely picking up further as COVID-19 headwinds begin to abate.

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 $137.85 yesterday.

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