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Nike Shares Hit an All-Time High after Recent Upgrades


Aug. 22 2018, Published 8:05 a.m. ET

Nike shares touched an all-time high on August 20

On August 20, Nike (NKE) shares touched to an all-time high price of $82.42 after analysts from Piper Jaffray and Susquehanna upgraded the company. Nike stock closed the day at $82.15, which was ~3% above the previous day’s closing price.

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Piper Jaffray upgraded Nike to “overweight”

Piper Jaffray analyst Erinn Murphy upgraded Nike from a “neutral” to “overweight” rating citing the company’s strong inventory position, reviving growth trends in North America, shift to direct-to-consumer sales, and healthy product pipeline. Murphy raised Nike’s target price from $72 to $93.

Murphy also noted that athletic brands like Nike and Adidas (ADDYY) have lower chances of being disturbed by Amazon.com (AMZN) due to their global scale and reach.

“Consumer shift to digital commerce is a significant tailwind for athletic brands given low Amazon risk and the accelerating increase in revenue per unit it is driving,” said Murphy in a client note.

Susquehanna upgrades Nike to “positive”

Susquehanna analyst Sam Poser upgraded Nike from “neutral” to “positive” due to the company’s product offerings, market share gains from Adidas, and improved position in North America wholesale. He also raised Nike’s target price from $78 to $93.

“Based on our proprietary checks with retailers, and with some of Nike’s competitors, it has become clear, after some concern on our end, that Nike is beginning to balance scale and scarcity well, across the spectrum of retail partners and across merchandise categories,” said Poser.

Poser said that Nike appears to be on track to hit the $50 billion revenue mark by 2023.

Next, we’ll discuss Nike’s recent stock market performance and how analysts’ view the company.


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