Market Overview

UPDATE: D.A. Davidson Reiterates On Nike Inc As F1Q Results Handily Exceed Consensus

Related NKE
10 Biggest Price Target Changes For Thursday
Benzinga's Top Upgrades, Downgrades For June 21, 2018
Dueling analysts on Nike (Seeking Alpha)

In a report published Friday, D.A. Davidson analyst Andrew Burns reiterated a Neutral rating on Nike Inc (NYSE: NKE), and raised the price target from $85.00 to $96.00.

In the report, D.A. Davidson noted, “NIKE reported revenue and EPS of $7.982 billion and $1.09, above consensus estimates of $7.775 billion and $0.88 and our estimates of $7.802 billion and $0.86. Constant currency (c.c.) revenue growth of 15% was driven by Western Europe (+25%), China (+20%), North America (+12%), Emerging Markets (+10%), and Central & Eastern Europe (+9%). DTC revenue grew 30% (c.c.). Gross margin expanded 169bp year-over-year (y/y) to 46.6% driven primarily by a mix shift to higher margin products, higher ASPs, and DTC growth, offset partially by higher product input costs. SG&A of $2.480 billion grew 21% y/y, driven by 23% demand creation growth (below initial guidance for 30% growth) and 19% overhead growth (DTC expansion and operational infrastructure investment). A 21.7% tax rate (favorable resolution of tax audits), benefitted the quarter by $0.05, relative to our 25% assumption.”

Nike Inc closed on Thursday at $79.75.

Latest Ratings for NKE

Jun 2018BairdMaintainsOutperformOutperform
Jun 2018UBSDowngradesBuyNeutral
Jun 2018Stifel NicolausMaintainsBuyBuy

View More Analyst Ratings for NKE
View the Latest Analyst Ratings

Posted-In: Andrew Burns D.A. DavidsonAnalyst Color Price Target Analyst Ratings


Related Articles (NKE)

View Comments and Join the Discussion!