UPDATE: D.A. Davidson Reiterates On Nike Inc As F1Q Results Handily Exceed Consensus
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 2016||Oppenheimer||Initiates Coverage On||Perform|
|Oct 2016||Susquehanna||Initiates Coverage On||Positive|
|Sep 2016||Guggenheim||Initiates Coverage on||Buy|
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