CFRA Upgrades Nike (NKE) to Buy

CFRA analyst Zachary Warring upgraded Nike (NYSE: NKE) from Hold to Buy with a price target of $89.00.

The analyst said: "We maintain our 12-month price target of $89, based on 25.5x our FY 25 (Mar.) EPS estimate and below the company's two-year average forward P/E multiple of 28.8x, reflecting our opinion that NKE's multiple has been too high in recent years and should trade more in line with its pre-pandemic multiple in the mid-20s. Although Nike guided for significant top-line slowdown in its Q4 earnings call and has fresh competition from the likes of Hoka and On, we see value emerging in shares of this apparel and footwear blue chip. We still see a path for Nike to earn $3.50 in FY 25 even with the revenue decline in the first half of the year. We see a low-single-digit revenue decline and slightly higher margins over the next 12 months as the company focuses on innovation in the pipeline and operating efficiencies. We firmly believe NKE is the leader in footwear and apparel across the globe and continues to maintain a fortress balance sheet with significant capital returns. We raise our opinion to Buy."

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 $73.39 yesterday.

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