UPDATE: Stifel Upgrades Nike

Shares of

are up 2.9 percent to $72.88 after Stifel upgraded the stock from Hold to Buy and announced a $87 price target. Analyst Jim Duffy has been cautious on Nike near term because:

The risk/reward for shares of Nike have improved because of “standout fundamentals in combination with correction in both the consensus numbers and relative multiple,” according to Duffy. The analyst sees “high single digit or low double digit revenue growth” for Nike compared to S&P consensus growth of 2 percent. The growth will be fueled by “innovation, category growth, and ongoing share gains.” Duffy is also forecasting “low to mid-teens EPS growth” compared to 8 percent for the S&P. EPS growth will be due to “grow margin expansion through higher average sales price performance products, continued outgrowth of direct to consumer, supply chain innovations, and potentially geographic mix,” according to the analyst.