Deutsche Bank Starts Nike (NKE) at Buy; Firing on Many Cylinders
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Price: $94.02 --0%
Rating Summary:
32 Buy, 19 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 8 | New: 13
Rating Summary:
32 Buy, 19 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 8 | New: 13
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Deutsche Bank initiates coverage on Nike (NYSE: NKE) with a Buy rating and $68 price target Tuesday.
Analyst Dave Weiner comments, " We like NKE stock into FY14 (May '14), as the brand's top-line momentum should translate in to accelerating EPS growth. The reality is that Nike Inc. is benefiting from a confluence of positive catalysts, including share gains (strongly so in the U.S.), the margin benefit of channel, product, and geog. mix shifts (30bp+/year, DB est.), a pending turnaround in the high margin Chinese business, and long-term sales/margin support from the Flyknit footwear/manf. platform."
Weiner said, first the business has momentum and is hitting on many cylinders; second, the China turnaround, while still on the come, has started in earnest; third, too early to tell if Flyknit is a game-changer, but expense benefits are underappreciated; and Fourth, their proprietary global DISCOUNT TRACKER
suggests that Nike Inc.'s Retail promotions and discounts, globally, are improving.
The firm's $68 price target is based on a 15% EPS growth profile and 150% FY14 PE/G.
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 $59.95 yesterday.
Analyst Dave Weiner comments, " We like NKE stock into FY14 (May '14), as the brand's top-line momentum should translate in to accelerating EPS growth. The reality is that Nike Inc. is benefiting from a confluence of positive catalysts, including share gains (strongly so in the U.S.), the margin benefit of channel, product, and geog. mix shifts (30bp+/year, DB est.), a pending turnaround in the high margin Chinese business, and long-term sales/margin support from the Flyknit footwear/manf. platform."
Weiner said, first the business has momentum and is hitting on many cylinders; second, the China turnaround, while still on the come, has started in earnest; third, too early to tell if Flyknit is a game-changer, but expense benefits are underappreciated; and Fourth, their proprietary global DISCOUNT TRACKER
suggests that Nike Inc.'s Retail promotions and discounts, globally, are improving.
The firm's $68 price target is based on a 15% EPS growth profile and 150% FY14 PE/G.
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 $59.95 yesterday.
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