Brean Capital Raised Price Target on Nike (NKE) Following 2Q EPS Beat
Brean Capital reiterated a Buy rating on Nike (NYSE: NKE), and raised the price target of $147.00 (from $144.00), following the company's 2Q earnings report. NKE reported decent 2Q upside, with EPS of $0.90 coming in above consensus estimates of $0.86. While revenues came in below consensus estimates of $7.8B.
Analyst Eric Tracy commented, "We remain constructive on shares of NKE, with 2Q showing continued momentum (EPS beat, strong futures growth) across all geographies and most product categories. While multiple compression remains a legitimate risk to our thesis (NKE trades 25x our FY18 EPS estimate, last week's rate hike could provide a catalyst for a re-rating of multiples across our space), we continue to believe visibility into fundamentals remains high, with innovation driving competitive separation and supporting pricing (est HSD+ rev growth sustainable), while structural drivers including mfg/ supply chain and DTC mix shifts continue to drive accretive growth. We tweak our ests/TP higher (now $147 from $144)."
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Shares of Nike closed at $131.85 yesterday.