Cowen Raises Price Target on Nike (NKE) to $140 Following 1Q EPS Growth
Cowen reiterated an Outperform rating on Nike (NYSE: NKE), and raised the price target to $140.00 (from $130.00), following the company's 1Q16 results. NKE reported EPS of $1.34, above consensus of $1.19. Nike reported constant currency futures growth of +17%, the strongest futures growth since Q3:12.
Analyst John Kernan commented, "NKE reported impressive Q1 results which beat our, and consensus, EPS estimates driven by higher sales growth, margin expansion and a lower tax rate. NKE's gross margin expansion potential, led by product innovation, DTC and supply chain enhancements, supports our mid-teens EPS CAGR. We are raising our FY16 and FY17 EPS estimates and our PT to $140 from $130, reflecting 29x our FY17E EPS."
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Shares of Nike closed at $114.79 yesterday.