UPDATE: J.P. Morgan Raises PT on Nike on Positive Outlook

In a report published Tuesday, J.P. Morgan analyst Matthew R. Boss reiterated an Overweight rating on Nike NKE, and raised the price target from $70.00 to $80.00. In the report, J.P. Morgan noted, “Nike's brand is best in class with significant runway remaining in the long-term story (with both top-line and gross margin)—a compelling combination in our view. Given strong brand equity and continued product innovation, we are modeling compound annual revenue growth of 10% through 2015 (~$8B incremental to $32.4B). Specifically, NKE's centralization ‘Category Offense' transformation has legs (International in first inning today) with an attractive top-line combination of low-double-digit apparel growth (women's underpenetrated today) and consistent high-single-digit footwear (pricing power with Free, Flywire, and Lunar integrated technology). Spanning more than 30 years, innovation has been key to Nike's first-mover advantage, with recent technologies such as Dri-Fit and sustainable materials in apparel, and Free, Lunar, and Flywire technology in footwear being integrated across all platforms.” Nike closed on Monday at $72.64.