Nike Is Now Worth 6 Bucks More, Argus Says

On Tuesday Argus issued a company report on Nike Inc.

as the retailer continues to increase market share in the footwear and apparel market. Currently Argus rates Nike, Inc. as a Buy and raised their price target from $110 to $116. Analysts at Argus wrote, "A more favorable product mix, strong Converse sales, and price increases more than offset unfavorable foreign currency translation in the third quarter, and led to a 140-basis-point increase in the gross margin, to 45.9 percent...Over the long term, we expect Nike to continue to dominate the athletic apparel and footwear market, and note that it has a particularly strong presence in high-end footwear thanks to its marketing strength and endorsements from famous athletes. Although the industry remains fiercely competitive, we expect the company to build on its dominant position through its globally recognized brand, innovative products, economies of scale, and rapid growth in emerging markets." Argus believes that due to Nike's valuable brand and reputation in the athletic wear industry they will continue to generate strong revenues and deliver stellar earnings. Furthermore Nike has the potential to grow worldwide sales as emerging market incomes rise and consumer spending recovers. Their partnerships with globally recognized athletes will continue to elevate demand for their products. Currently Nike, Inc. is trading at $101.57, up 0.11 percent.