Nike (NKE) Checks Are Reasons for Optimism - Stifel

March 12, 2021 8:35 AM EST
Get Alerts NKE Hot Sheet
Price: $129.80 +0.48%

Rating Summary:
    42 Buy, 8 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 22 | Down: 11 | New: 74
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Stifel analyst, Jim Duffy, reiterated a Buy rating and $168.00 price target on Nike (NYSE: NKE) noting digital direct trends and positive North American footwear checks are reasons for optimism into year-end despite supply side headwinds.

The analyst stated "Helped by FX, we expect upside to our estimates in F3Q, and see potential for a modest increase to FY21 (May ’21) guidance. NIKE is addressing shortages of high-demand product by prioritizing sales through the higher ASP and higher margin Direct channel. Comparing to pre-COVID results, our F2H21 estimates reflect +9% higher sales and +5% higher earnings than the F2H19 period. Into FY22, we expect NIKE returns towards a normalized model for +HSD or better sales, with gross margin improvement and SG&A leverage. NIKE remains a solid core holding for large cap growth investors, and we recommend investors focus on underlying indicators of demand strength while appreciating that supply constraints remain a challenge in F3Q and into F4Q."

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 $141.37 yesterday.



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