Bank of America Maintains Buy, $105 Target on Nike
Bank of America reiterates its Buy rating and $105 target price on Nike (NYSE: NKE) as high revenue outlook on strong futures offsets weak gross margins.
Bank of America notes, "Global futures in constant $ were up +13% (above fcst 11.3%), reflecting a 6% increase in average price per unit (+7% unit growth). Growth was led by North America up +16% (fcst 11%) and China up +27% (fcst 17%). Constant $ futures remained strong in Emerging Markets up +17% (fcst. 20%) and Central and Eastern Europe up +15% (fcst. 12%), offsetting a soft W. Europe (futures +4%) and Japan (futures -8%). Importantly, futures strength should continue to be supported by footwear and apparel momentum and broad based price increases in F2H12."
NKE closed at $93.63 per share on Tuesday.
