FBR Capital Reiterates an 'Outperform' on Nike (NKE); Accelerating Demand, NT Margin Headwinds Persist; Global Story Intact

FBR Capital reiterates an 'Outperform' on Nike (NYSE: NKE), raises PT from $91 to $97.

FBR analyst says, "We are raising our FY12 EPS estimate to $4.85 (was $4.71) on higher sales (now +10%, up from +9%) and lower share count and tax. Primarily on lower gross margin in 1Q, our operating margin estimate is down 30 bps to 13.1%. We are introducing an FY13 EPS estimate of $5.64 (+16% YOY)."

"While demand appears robust, the NBA lockout raises some uncertainty in basketball, which could be more material if the season gets canceled. Predicated on the athletic footwear cycle holding up (share gains in developed North America/Europe) and further penetration in China and emerging markets, we believe a target of high-single-digit annual revenue growth through FY15 (to $28 billion to $30 billion, up from $27 billion) is achievable."

For more ratings news on Nike click here and for the rating history of Nike click here.

Shares of Nike closed at $89.98 yesterday.

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