FBR Capital Maintains an 'Outperform' on Nike (NKE); 3Q Preview: Scale, Pricing Power Support Superior Positioning
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Price: $40.73 -1.21%
Rating Summary:
26 Buy, 28 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
26 Buy, 28 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital maintains an 'Outperform' on Nike (NYSE: NKE), PT $98.
FBR analyst says, "Into the 3Q11 print on Thursday (3/17) we are buyers of NKE...In our opinion, several factors - questions as to the sustainability of the current domestic athletic footwear cycle against stiffening compares (with inventories building), product cost inflation risk, and, most recently, turmoil in Japan - have conspired to drive a consolidation in NKE shares of late (off 6% since 2Q print in December versus +4% for the S&P), creating an opportunity to start and/or add to a position in the name."
"Based primarily on better gross margin, we are raising our 3Q EPS estimate to $1.12 (up from $1.10 and vs. consensus at $1.11), which also assumes +9% top-line growth. We are forecasting 3Q global future orders (fivemonth backlog) +7%, which could prove conservative. Our FY11 EPS goes to $4.42 (from $4.40), and assumes +8% top-line growth and operating margin of 13.7% (+70 bps YOY). Our FY12 EPS estimate of $4.96 implies 12% YOY growth."
For more ratings news on Nike click here and for the rating history of Nike click here.
Shares of Nike closed at $85.33 yesterday.
FBR analyst says, "Into the 3Q11 print on Thursday (3/17) we are buyers of NKE...In our opinion, several factors - questions as to the sustainability of the current domestic athletic footwear cycle against stiffening compares (with inventories building), product cost inflation risk, and, most recently, turmoil in Japan - have conspired to drive a consolidation in NKE shares of late (off 6% since 2Q print in December versus +4% for the S&P), creating an opportunity to start and/or add to a position in the name."
"Based primarily on better gross margin, we are raising our 3Q EPS estimate to $1.12 (up from $1.10 and vs. consensus at $1.11), which also assumes +9% top-line growth. We are forecasting 3Q global future orders (fivemonth backlog) +7%, which could prove conservative. Our FY11 EPS goes to $4.42 (from $4.40), and assumes +8% top-line growth and operating margin of 13.7% (+70 bps YOY). Our FY12 EPS estimate of $4.96 implies 12% YOY growth."
For more ratings news on Nike click here and for the rating history of Nike click here.
Shares of Nike closed at $85.33 yesterday.
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