Nike: Credit Suisse Sees 'Solid Global Demand Ahead But F/X An Incremental Headwind'

In a report issued Monday, analysts at Credit Suisse trimmed their price target on shares of Nike Inc NKE, from $102 to $99, while reiterating an Outperform rating on the stock. According to the firm, the apparel and footwear company will see strong global demand over fiscal 2016, but F/X will pose an incremental headwind.

The analysts see robust EPS growth into fiscal 2016, driven by: "1) continued market share capture in the U.S.; 2) strong demand trends in China; and 3) benefits from Western Europe's restructuring initiatives and subsequent EBIT margin recapture." Nonetheless, F/X will be become an incremental headwind, especially as the euro and Brazilian real continue to weaken.

Credit Suisse models for mid- to high-single-digit topline growth and double-digit EPS growth. For the third quarter, they expect EPS of $0.83, versus consensus of $0.86. For fiscal 2015, they project EPS of $3.53, below consensus of $3.57 per share.