Piper Jaffray Raises Price target on Nike (NKE) Following 15c EPS BEat
Piper Jaffray reiterated an Overweight rating on Nike (NYSE: NKE), and raised the price target to $130.00 (from $120.00), following the company's 1Q16 earnings results. EPS of $1.34 was well ahead of the Street's $1.19 estimate.
Analyst Erinn Murphy commented, "We are reiterating our Overweight rating and raising our estimates and PT from $120 to $130 following NKE's stellar Q1, which handily beat estimates across sales, gross margin and EPS. More importantly, futures ending Q1 accelerated from Q4, topping estimates. EPS came in at $1.34, ahead of our $1.18 estimate with $0.07 of the beat coming from better underlying business and $0.09 of the beat from an improved tax rate. Sales were nicely ahead of our estimate–up 5.4% reported (vs. our 2.1% estimate) and up 14% constant currency. Gross margins bested our estimate and were up 90 bps vs. our +50 bps estimate. Futures, ex-FX, were up 17%, an acceleration from the +13% at the end of Q4. We note China was surprisingly robust with Q1 sales up 30% (ex-FX) and futures up 27%. Women's growth continues to outpace men's."
For an analyst ratings summary and ratings history on Nike click here. For more ratings news on Nike click here.
Shares of Nike closed at $114.79 yesterday.