Why 49% of Nike Analysts Suggest a ‘Buy’



Who’s positive on Nike?

Wall Street has a positive to neutral view on Nike (NKE). The company is rated a 2.4 on a scale of 1 for “strong buy” to 5 for “sell.” It has been given a “buy” recommendation by 49% of the 37 analysts covering it.

Nomura, Guggenheim, Argus Research, and Morgan Stanley are among the brokers who are positive on Nike.

Guggenheim reaffirms ‘buy’ for Nike

Analyst Robert Drbul of Guggenheim reiterated a “buy” rating for NKE stock on December 8, 2017. He raised Nike’s fiscal 2018 and fiscal 2019 earnings estimates, citing an improvement in the North American retail market.

Drbul stated five reasons for his positive take on the company in a client note: “1) the global cachet of the brand, 2) NKE’s continued investments towards the blending of physical/digital (both owned and partnered), 3) an ambitious, but achievable long-term growth strategy, 4) an industry leading pipeline, and 5) a strong balance sheet.”

Deutsche Bank raises Nike’s price target, maintains a ‘buy’

On December 14, 2017, Deutsche Bank raised Nike’s price target from $61 to $76 while maintaining a “buy” rating.

Analyst Paul Trussell wrote, “We believe NKE’s Consumer Direct Offense, shift towards differentiated retail experiences, DTC and international focus combine to make-up the right strategy and more importantly we see a better balance of technology enhanced performance product and fashion forward but comfortable lifestyle assortment hitting the shelves of late.”

Competitor recommendations

Skechers (SKX) and Lululemon Athletica (LULU) have a larger percentage of “buy” recommendations than Nike. About 91% of the analysts covering SKX recommend a “buy” for the stock, while 58% of analysts covering LULU suggest a “buy.”

ETF investors seeking to add exposure to NKE can consider the SPDR Dow Jones Industrial Average ETF (DIA), which invests 1.8% of its portfolio in NKE.

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