UPDATE: Morgan Stanley Upgrades Nike at Tipping Point of Major EPS Growth

In a report published Wednesday, Morgan Stanley analyst Jay Sole upgraded the rating on

from Equal-Weight to Overweight, and named an $85.00 price target. In the report, Morgan Stanley noted, “Nike dominates the industry and we think it's at a tipping point of major EPS growth acceleration sustaining a 17% 4-year EPS CAGR. Nike's powerful balance sheet is helping it create a virtuous circle of outsized investment spending, operational excellence, brand strength, and ROIC gains. Bears say valuation is too high and Nike is too big to grow sales at the Street's forecasted high single digit rate. Our view is NKE can deliver a 10% annual 3-year total shareholder return even if its P/E falls to its LT avg.” Nike closed on Tuesday at $75.70.