Market Overview

Bank Of America Boosts Nike's Price Target As China Athletics Rebound

Share:
Related NKE
From Planet Fitness To Camping World, BofA Picks Lifestyle Brands Likely To Benefit From Tax Reform
Could Under Armour Have Its Fundamentals On Track In Less Than A Year?
US Market Indexes Gain on Thursday (GuruFocus)

On Tuesday, analysts at Bank of America raised the price target on shares of Nike Inc (NYSE: NKE) from $100 to $110 and maintained the Buy rating.

The price target increase is a result of an athletic rebound in the Chinese market.

Analysts find the rebound In China is supported by the consolidation of local Chinese brands, a rising sports participation rate, the People’s Republic of China targeting the sports entertainment industry as an area for growth, and improved channel inventories by China distributors and athletic brands.

Robert Ohmes believes Nike's China sales will increase given the following reasons:

  • Strong trends at retro-fitted wholesale partner doors marked by accelerating same-store sales (Belle).
  • Indications that the Dept. Store channel is increasing women's athletic performance sportswear space.
  • Continued share gains from smaller regional Chinese brands by Nike's still growing owned outlet store base.
  • Growing base of wholesale sales done over the internet in China (including thru VIP Shops).

Lastly, order growth indications from OEMs imply healthy global growth for Nike.

Shares of Nike recently traded at $95.15, up 0.2 percent.

Latest Ratings for NKE

DateFirmActionFromTo
Nov 2017HSBCDowngradesBuyHold
Oct 2017Goldman SachsDowngradesBuyNeutral
Oct 2017Pivotal ResearchInitiates Coverage OnHold

View More Analyst Ratings for NKE
View the Latest Analyst Ratings

Posted-In: Bank of America Robert OhmesAnalyst Color Price Target Analyst Ratings

 

Related Articles (NKE)

View Comments and Join the Discussion!

Partner Center