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Morgan Stanley Sees Fundamental Story on Track for Nike

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In a report published Friday, Morgan Stanley analyst Jay Sole reiterated an Overweight rating and $85.00 price target on Nike (NYSE: NKE).

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 16% 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 Thursday at $79.27.

Latest Ratings for NKE

DateFirmActionFromTo
Jan 2015JP MorganMaintainsOverweight
Dec 2014Argus ResearchMaintainsBuy
Dec 2014CitigroupMaintainsBuy

View More Analyst Ratings for NKE
View the Latest Analyst Ratings

Posted-In: Jay Sole Morgan StanleyAnalyst Color Reiteration Analyst Ratings

 

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