UPDATE: Stifel Nicolaus Reiterates Buy, Raises PT to $108 on Nike

Stifel Nicolaus maintains its Buy rating on Nike (NYSE: NKE) and raises its target to $108 as pricing power sets the stage for ongoing growth and expanding margins in Q4.

Stifel says, “With pricing actions taken into spring and moderating cost inflation, we expect NIKE to experience growth tailwinds into FY13 and we see four straight quarters of expanding gross margin. Historically, NIKE's multiple has expanded in anticipation of expanding gross margin. Ahead of FY2Q earnings, we see capacity for both increases to consensus estimates and multiple expansion and we are raising our 12-month target price accordingly.”

NKE closed at $97.68 per share on Friday.