Piper Jaffray Raises Price Target on Nike (NKE) Following 4Q Results
Piper Jaffray reiterates an Overweight rating on Nike (NYSE: NKE), and raised the price target to $120.00 (from $115.00), following 4Q15 results. NKE's EPS came in at $0.98 vs. Piper Jaffray's $0.82 estimate and Street's $0.83 estimate.
Analyst Erinn Murphy commented, "We are reiterating our Overweight rating, raising our estimates and taking our PT up from $115 to $120 following NKE's solid Q4, in which EPS came in at $0.98 vs. our $0.82. Sales were nicely ahead of our estimate--up 5% reported (vs. our 2% estimate) and up 13% constant currency. Gross margins bested our estimate and were up 60 bps vs. our 30 bps estimate. Futures, ex-FX, were up 13% and acceleration from the +11% at the end of Q3. Clearly, the brand continues to gain share globally and we are pleased that its most established market, North America, is still seeing mid-teens growth. China and Western Europe were up 20% and 17%, respectively. Categories of notable strength included women's, sportswear and basketball while core running improved."
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Shares of Nike closed at $105.22 yesterday.