UPDATE: Deutsche Bank Initiates Coverage on Nike with Buy Rating, $68 PT on Expected EPS Growth

In a report published Tuesday, Deutsche Bank analyst Dave Weiner initiated coverage on

with a Buy rating and $68.00 price target. In the report, Deutsche Bank noted, “We like NKE stock into FY14 (May '14), as the brand's top-line momentum should translate into accelerating EPS growth. The reality is that Nike Inc. is benefitting from a confluence of positive catalysts, including share gains (strongly so in the U.S.), the margin benefit of channel, product, and geog. Mix shifts (30bp+/year, DB est.), a pending turnaround in the high margin Chinese business, and long-term sales/margin support from the Flyknit footwear/manf. platform. $68PT based on a LT 15% EPS growth profile and a 130% PE/G on our FY15 model. Key risk is if revenues weaken below +MSD to HSD y/y.” Nike closed on Monday at $59.95.