Nike Stock Now Worth $118, Stifel Says

In a report published Tuesday, Stifel analyst Jim Duffy maintained a Buy rating on

, while raising the price target from $110 to $118. Nike is expected to report 4Q15 revenues and EPS at $7,742 million and $0.87, versus consensus estimates of $7,669million and $0.83, respectively. The company's constant currency futures growth is expected to accelerate sequentially to 12 percent, from 11 percent in FY3Q. The company's revenue growth is likely to be driven by strength in the footwear and apparel segments across various geographic regions and Nike's leadership position. Nike is expected to reiterate its preliminary guidance for FY16. "Favorable momentum in trends, a greater focus on top brands by both consumers and retailers, and a demand tailwind from the Olympics as early as F3Q16, points to capacity for accelerating topline trends, and upward revision to estimates as the year unfolds," analyst Jim Duffy mentioned. The company's FY16 earnings growth is expected to be restricted by demand creation spending related to the Olympics in the second half. In the report Stifel noted, "We continue to view NKE as a solid core holding given the highly defensible market position, fundamental strength, and the scarcity value to large cap consumer names with capacity for double-digit revenue growth."