UPDATE: D.A. Davidson Reiterates Neutral Rating, Raises PT on Nike

In a report published Friday, D.A. Davidson & Co. reiterated its Neutral rating on Nike

, and raised its price target from $104.00 to $108.00. D.A. Davidson noted, “NIKE reported revenue and EPS of $5.955 billion and $1.14, versus consensus of $5.970 billion and $1.00 and our estimates of $5.993 billion and $1.02. Gross margin declined 36bp year-over-year (y/y) to 42.5%, but was better than guidance of down ~75bp. Gross margin benefitted from pricing and materials costs, offset by higher labor costs, unfavorable currency headwinds and negative mix shift. SG&A of $1.836 billion grew 6.1% y/y and came in $44 million below our estimate...We are maintaining our NEUTRAL rating and raising our price target to $108 (previously $104), based on 18x our revised FY14 EPS estimate of $6.02. We believe NKE deserves its premium valuation, but the combination of limited upside to our target and heightened end-market uncertainty in several regions leaves us on the sidelines for now.” Nike closed on Thursday at $99.00.