D.A. Davidson Has Mixed Outlook On Nike Inc Ahead Of Earnings Report

In a report published Wednesday, D.A. Davidson analyst Andrew Burns reiterated a Neutral rating and $85.00 price target on Nike Inc NKE. In the report, D.A. Davidson noted, “Our F1Q revenue and EPS estimates are $7.802 billion and $0.86, compared to consensus of $7.775 billion and $0.88, respectively. F1Q guidance calls for low double-digit revenue growth, 75bp gross margin expansion, ~30% demand creation growth, and high-teens operating overhead growth. Our estimate assumes an 11.9% revenue growth, gross margin of 45.7% (up 80bp y/y), and 22.7% y/y SG&A growth, resulting in an operating margin of 13.4% (down 204bp y/y). We view consensus estimates and guidance as achievable.” Nike Inc closed on Tuesday at $79.92.