On Tuesday, analysts at Bank of America Merrill Lynch raised the price target on shares of Nike Inc. NKE from $100 to $110 and maintained the Buy rating.
The price target increase is a result of an athletic rebound in the Chinese market.
Analysts find the rebound In China is supported by the consolidation of local Chinese brands, a rising sports participation rate, the People’s Republic of China targeting the Sports entertainment industry as an area for growth, and improved channel inventories by China distributors and athletic brands.
Robert Ohmes believes Nike’s China sales will increase given the following reasons:
- Strong trends at retro-fitted wholesale partner doors marked by accelerating same-store sales (Belle).
- Indications that the Dept. Store channel is increasing women's athletic performance sportswear space.
- Continued share gains from smaller regional Chinese brands by Nike's still growing owned outlet store base.
- Growing base of wholesale sales done over the internet in China (including thru VIP Shops).
Lastly, order growth indications from OEMs imply healthy global growth for NKE.
Shares of Nike recently traded at $95.26 up 0.32 percent.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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