19 Mar

Nike Gears Up to Deliver Its Q3 2019 Results

WRITTEN BY Sharon Bailey

YTD movement

Footwear and apparel maker Nike (NKE) is scheduled to report its earnings results for the third quarter of fiscal 2019 (which ended on February 28) after the market closes on March 21. Nike impressed investors with strong revenue and earnings growth when it announced its fiscal 2019 second-quarter results in December 2018.

As of March 18, Nike stock has risen 18.5% YTD (year-to-date). Nike’s peers Lululemon (LULU), Under Armour (UAA), Skechers (SKX), and Columbia Sportswear (COLM) have risen 18.7%, 26.5%, 44.6%, and 24.9%, respectively, since the start of 2019. Nike and its peers have outperformed the S&P 500 Index, which has risen 13.0% YTD.

Nike Gears Up to Deliver Its Q3 2019 Results

Analysts’ activity

Following Nike’s fiscal 2019 second-quarter results, JPMorgan Chase upgraded its rating on Nike stock to an “overweight” from a “neutral,” and Pivotal Research raised its rating to a “buy” from a “hold.”

On January 9, HSBC raised its rating on the stock to a “buy” from a “hold” and increased its price target to $95 from $92. On the same day, Baird lowered its rating on Nike stock to a “neutral” from an “outperform.”

On January 22, Cowen and Company upgraded its rating to an “outperform” from a “market perform” and increased its price target to $90 from $80.

On February 8, Oppenheimer raised its price target on Nike to $100 from $90. On February 15, UBS increased its price target to $86 from $82. On February 22, UBS again raised its price target to $87 from $86.

On March 14, Wedbush increased its price target on Nike to $96 from $90. On March 18, Canaccord Genuity increased its price target to $96 from $95, and Telsey Advisory increased its price target to $95 from $92. Credit Suisse also raised its price target to $100 from $90. On March 19, JPMorgan Chase raised its price target to $90 from $85.

The 12-month average price target for Nike stock is $89.68, implying a 2.0% potential upside.

Nike has “buy” recommendations from 25 out of 34 analysts, “holds” from eight, and a “sell” from one analyst. The consensus “buy” rating by most of the analysts covering Nike stock is backed by the company’s focus on innovation, strength in its direct-to-consumer business, and improvements in its North American revenue.

We’ll look at analysts’ estimate for Nike’s fiscal 2019 third-quarter revenue and its expected growth factors in the next article.

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