Auriga Reiterates a 'Buy' on Nike (NKE); Gross Margin Headwinds Vs. Product Momentum

Auriga reiterates a 'Buy' on Nike (NYSE: NKE) price target of $128.00.

Auriga analyst said, "NKE reported better than expected Q4 earnings as strong sales growth and leverage of fixed costs more than offset gross margin headwinds. Markdowns on sportswear in China and Europe pressured gross margins more than anticipated. Gross margin pressure is expected going forward; however, futures for NKE rose a stronger than expected 18% for the March-July period. We are adjusting our 2013 EPS estimate to $5.79 from $5.87 to reflect more conservative gross margins. We believe the product has momentum and the combined Olympics and European Championships could drive meaningful sales gains in the next few quarters."

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 $110.99 yesterday.

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