Market Overview

Morgan Stanley Sees Fundamental Story on Track for Nike

Related NKE
Under Armour Is Looking To Cross Over Nike
Athleisure Wear Fad A Rapidly Growing, But Crowded Space
When Rate Hikes Come, They Will Ripple Across U.S. Economy (Fox Business)

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.

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

 

Related Articles (NKE)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters