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How Analyst Recommendations for Nike Have Changed Recently

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Nike has been upgraded three times

At least three brokers have upgraded Nike (NKE) since its last quarterly results at the end of June. Let’s look at those upgrades in detail.

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Piper Jaffray upgraded Nike to ‘overweight’

On August 20, Piper Jaffray upgraded Nike from“neutral” to “overweight,” citing the company’s strong inventory position, reviving growth trends in North America, a shift to direct-to-consumer sales, and a healthy product pipeline.

Analyst Erinn Murphy noted that athletic brands Nike and Adidas (ADDYY) have lower chances of being affected by Amazon (AMZN) due to their global scale and reach.

Susquehanna upgrades Nike to ‘positive’

Susquehanna analyst Sam Poser upgraded Nike from “neutral” to “positive” on August 20. The company’s strong product offerings, market share gains from Adidas, and improved position in North American wholesale were behind the analyst’s bullish stance.

“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,” wrote Poser.

Canaccord Genuity upgrades Nike to ‘buy’

Canaccord Genuity upgraded Nike from “neutral” to “buy” on September 11. Analyst Camilo Lyon appreciated Nike’s decision to feature NFL quarterback Colin Kaepernick in its latest ad campaign.

“We believe Nike’s new ‘Just Do It’ ad campaign with Colin Kaepernick was a stroke of genius,” wrote Lyon. “This premeditated move was another subtle but significant sign of Nike’s strength and confidence in its position in the marketplace, one that likely does more good than harm,” Poser added. He said Nike appears to be on track to hit the $50 billion revenue mark by 2023.

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