Market Overview

UPDATE: D.A. Davidson Reiterates On Nike Inc As F1Q Results Handily Exceed Consensus

Related NKE
Nike To Rebound By Double-Digits: Vetr
Benzinga's Top Initiations
Does Nike Still Top Under Armour? (Seeking Alpha)

In a report published Friday, D.A. Davidson analyst Andrew Burns reiterated a Neutral rating on Nike Inc (NYSE: NKE), and raised the price target from $85.00 to $96.00.

In the report, D.A. Davidson noted, “NIKE reported revenue and EPS of $7.982 billion and $1.09, above consensus estimates of $7.775 billion and $0.88 and our estimates of $7.802 billion and $0.86. Constant currency (c.c.) revenue growth of 15% was driven by Western Europe (+25%), China (+20%), North America (+12%), Emerging Markets (+10%), and Central & Eastern Europe (+9%). DTC revenue grew 30% (c.c.). Gross margin expanded 169bp year-over-year (y/y) to 46.6% driven primarily by a mix shift to higher margin products, higher ASPs, and DTC growth, offset partially by higher product input costs. SG&A of $2.480 billion grew 21% y/y, driven by 23% demand creation growth (below initial guidance for 30% growth) and 19% overhead growth (DTC expansion and operational infrastructure investment). A 21.7% tax rate (favorable resolution of tax audits), benefitted the quarter by $0.05, relative to our 25% assumption.”

Nike Inc closed on Thursday at $79.75.

Latest Ratings for NKE

Oct 2016OppenheimerInitiates Coverage OnPerform
Oct 2016SusquehannaInitiates Coverage OnPositive
Sep 2016GuggenheimInitiates Coverage onBuy

View More Analyst Ratings for NKE
View the Latest Analyst Ratings

Posted-In: Andrew Burns D.A. DavidsonAnalyst Color Price Target Analyst Ratings


Related Articles (NKE)

View Comments and Join the Discussion!