UBS Raises Price Target on Nike (NKE) Following EPS Beat
UBS reiterates a Buy rating on Nike (NYSE: NKE), and raised the price target to $122.00 (from $110.00), following F4Q15. NKE reported EPS of $0.98, above Street's $0.83. Analyst Michael Binetti says that there are several LT catalysts emerging that should help support an extended competitive advantage period.
Binetti commented, "NKE reported F4Q EPS of $0.98. Excluding +$0.13 from higher other inc. & a lower tax rate YOY, EPS would have been $0.86 (+10.3% YOY)—above our $0.85, Street: $0.83. EPS quality was solid, with +4.8% rev growth (+12.8% ex-FX) vs UBSe: +3.2% and GMs +60bp (UBSe: +25bp). Global futures accelerated to +13% ex-FX from +11% in F3Q. We're raising FY16E EPS to $4.20 (+13.5% YOY) from $3.95 based on +6.5% rev growth (incl a ~400bp FX drag), GM: +50bp YOY, SG&A: +6.5% YOY, $200m of other income (a ~$0.17 lift YOY) and 24% tax rate. Raising F1Q EPS to $1.18 from $1.17."
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Shares of Nike closed at $105.22 yesterday.