Auriga Maintains a 'Buy' on Nike (NKE); Raising PT & Estimates

Auriga maintains a 'Buy' on Nike (NYSE: NKE) price target raised to $128.00.

Auriga analyst said, "We are increasing our estimates on NKE for the quarter and year to reflect our belief that NKE's superior product offering could lead to continued earnings growth going forward. We expect sales +15% in FQ3, fueled by technical athletic footwear and apparel (Nike Free and Pro Combat, specifically). Gross margin pressure is expected; however we believe that pressure in Q4 could lessen and GM could increase in F1Q13. We expect futures +10% for March-July window. We believe NKE is well positioned to capture discretionary spending in the athletic segment and should continue to prosper with the upcoming Olympic Games in London...Increasing FQ3 (Feb) EPS estimate. We are increasing our FQ3 EPS estimate for NKE to $1.17 from $1.12 to reflect our conviction that NKE could report a better than expected quarter. NKE is scheduled to report earnings on Thursday March 22 after the close."

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 $111.22 yesterday.

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