UPDATE: Nike (NKE) Results Defended at Credit Suisse, PT Raised to $176

March 19, 2021 5:54 AM EDT
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Price: $135.45 +1.32%

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    43 Buy, 7 Hold, 2 Sell

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    Up: 17 | Down: 14 | New: 42
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(Updated - March 19, 2021 6:24 AM EDT)

Credit Suisse analyst Michael Binetti raised the price target on Nike (NYSE: NKE) to $176.00 (from $162.00) while maintaining a Outperform rating after F3Q revenue grew +3% but missed the Street expectation for +9%. EPS of $0.90 however, topped the Street $0.76 on a big GM beat +130bp (Street -10bp) and SG&A leverage 315bp YOY (Street 165bp). US port congestion pressured N. America revs to -10% YOY vs Street +3% (deliveries delayed by ~3 weeks). China was strong with revs +42% ex-FX growth (Street +25%) and total Nike digital grew +54%.

The analyst stated "Nike’s F3Q challenges are improving quickly, and we think F4Q guidance will prove significantly conservative. We reiterate Outperform. We’re raising our target price to $176 from $162 previously based on: 1) rolling our target price to be based on FY23 EPS of $4.75 (from FY22 previously), and 2) lowering our multiple to 37x from 41x previously to be in-line with NKE’s 3-year average P/E premium to peers. Risks: Competition, global macro/COVID, FX."


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