UPDATE: ISI Group Raises PT on Nike Following Strong 3Q Print

In a report published Friday, ISI Group analyst Omar Saad reiterated a Strong Buy rating on Nike

, and raised the price target from $60.00 to $70.00. In the report, Saad noted, “Nike's strong 3Q print last night went a long way to dispel the market's concerns on a number of fronts, and with continued North American momentum, gross margins expanding, and China showing signs of life, we think the stock is poised to have a great year. Although China sales in the quarter disappointed (-9% vs. consensus -5%), China futures turned the corner (+3% constant-currency), and management cited several positives (e.g. China retail comps +mid-teens) that lead us to believe that its repositioning strategy in this important market is working. North America continues to defy gravity, delivering a third consecutive quarter of high-teens+ growth, and Nike's steady sequential gross margin improvement over the past several quarters accelerated in 3Q, with gross margins expanding for the first time in 9 quarters.” Nike closed on Thursday at $53.60.