Discussing Wall Street’s take on Nike
Nike (NKE) is a well-covered stock tracked by 37 Wall Street analysts. Its ratings have improved since its first quarter of fiscal 2019 results it reported at the end of June.
Nike was rated 2.4 in July and is currently ranked 2.2. Ratings are done on a scale of 1 for “strong buy” to 5 for “sell.” Positive analyst action, which we’ll look at in the next part, is behind the improvement. Let’s look now at Wall Street’s broad view of the company.
Recommendations for Nike
Around 62% of analysts covering Nike recommend a “buy” for the stock, 32% recommend a “hold,” and 5% recommend a “sell.” Canaccord Genuity, Susquehanna, and Piper Jaffray are among the brokers who have a “buy” recommendation, while Goldman Sachs and HSBC Bank have “hold” ratings for Nike.
Looking at competitor ratings, Lululemon is rated 2.2, Columbia Sportswear 2.3, and Under Armour 3.1.
Nike is currently trading near its all-time high. Analysts don’t see any upside to Nike stock from here. The company has been assigned an average target price of $83.80, reflecting a downside of 2%. Individual target prices for the company range from $50 to $95. Nike traded at $85.26 on September 18.
Under Armour and Lululemon stocks have upsides of 0% and 1%, respectively, and Columbia Sportswear stock is projected to rise 5%.
ETF investors seeking to add exposure to NKE can consider the SPDR Dow Jones Industrial Average ETF (DIA), which invests 2.2% of its portfolio in NKE.