In a report issued Monday, analysts at Credit Suisse trimmed their price target on shares of Nike Inc NKE, from $102 to $99, while reiterating an Outperform rating on the stock. According to the firm, the apparel and footwear company will see strong global demand over fiscal 2016, but F/X will pose an incremental headwind.
The analysts see robust EPS growth into fiscal 2016, driven by: "1) continued market share capture in the U.S.; 2) strong demand trends in China; and 3) benefits from Western Europe's restructuring initiatives and subsequent EBIT margin recapture." Nonetheless, F/X will be become an incremental headwind, especially as the euro and Brazilian real continue to weaken.
Credit Suisse models for mid- to high-single-digit topline growth and double-digit EPS growth. For the third quarter, they expect EPS of $0.83, versus consensus of $0.86. For fiscal 2015, they project EPS of $3.53, below consensus of $3.57 per share.
Shares of Nike traded recently at $96.36, up 0.6 percent.© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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