Jefferies reiterates a Buy rating and $120.00 price target on Nike (NYSE: NKE) as NKE officially becomes the global merchandising partner of the NBA. The 8 year deal begins with the 2017-18 season, Analyst Edward Plank views this as a logical and fruitful partnership.

Plank commented, "Nike made it official after yesterday's close that the company will become the global merchandising partner of the NBA in an 8-year deal beginning with the 2017-18 season. The deal confirms what was widely anticipated, after prior sponsor Adidas opted out of bidding for renewal. We view this as a logical and fruitful partnership for Nike, one that will add to an already dominant market share position in basketball shoes and athlete sponsorships. Reiterate Buy."

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Shares of Nike closed at $103.34 yesterday.