Nike (NKE) PT Raised to $44 at Jefferies After Investor Day

March 12, 2021 8:31 AM EST
Get Alerts NKE Hot Sheet
Price: $129.90 +2.19%

Rating Summary:
    42 Buy, 8 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 20 | Down: 24 | New: 32
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Jefferies analyst Randal Konik raised the price target on Nike (NYSE: NKE) to $44.00 (from $42.00) while maintaining a Buy rating after attending the company's investor day. Key takeaways include:
1) Potential topline growth above expectations w/ '23 rev target of $4.7BB vs. our prior est. of $4.3BB
2) 8% FS revenue CAGR through '23 supported by Space, Cyber and Intel w/ implied 40% win rate (46%
historical) and 1.2X B2B
3) EBITDA margin expansion of 60 bps over three years (to9.3%), w/ M&A as the upside driver.

The analyst stated "Critical Infrastructure offers a similar growth profile given digitally enabled full-lifecycle solutions. This supports revenue of $2.3BB in 2023 (vs. our $2.26BB est.) from $2.0BB in 2020, a 5% CAGR. Growth is driven by smart infrastructure, rail and transit more than offsetting a $700MM headwind from program runoffs. An infrastructure bill could lend itself to upside, with a focus on more resilient smart roads and highways."



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