Market Overview

Time To Lace Up A Position In Nike Shares, Says Morgan Stanley

Time To Lace Up A Position In Nike Shares, Says Morgan Stanley

Nike Inc (NYSE: NKE) shares have lagged the market in the past year, but have caught fire of late. The stock is up 13.7 percent in the past month, and Morgan Stanley analyst Jay Sole recently said the athletic apparel giant has put its problems in the past. Morgan Stanley has upgraded the stock from Equal Weight to Overweight and raised its price target for Nike to $68.


In a new research note, Sole spelled out his bullish case for Nike and said the company is currently at the bottom of a cycle that will be back in the upswing in the near future.

Slumping sales have been one of the major factors weighing down Nike’s stock over the past year, but Sole said North American sales growth rates should reaccelerate to 5 percent by the middle of fiscal 2018 driven by new products such as Air VaporMax. In fact, Morgan Stanley projects that VaporMax could become Nike’s next $1 billion product.

Despite the recent hiccups, Sole said Nike’s long-term future and growth prospects are bright.

“The market does not appreciate Nike's ability to return to solid +L-MSD North America sales growth or drive long-term EBIT margin expansion,” Sole wrote.

Related Link: The Footwear Industry Has A Hispanic Problem

Morgan Stanley is predicting $4.00 in EPS from Nike in fiscal 2021, more than 60 percent above consensus analyst forecasts.

While value investors may be concerned about Nike’s high multiple, Sole pointed out that the stock currently trades at just a 27 percent valuation premium to the overall S&P 500, well below its historic valuation premium of 49 percent.

Latest Ratings for NKE

Sep 2020BarclaysMaintainsOverweight
Sep 2020Morgan StanleyMaintainsOverweight
Sep 2020Raymond JamesMaintainsOutperform

View More Analyst Ratings for NKE
View the Latest Analyst Ratings


Related Articles (NKE)

View Comments and Join the Discussion!

Posted-In: Jay SoleAnalyst Color Long Ideas Upgrades Price Target Top Stories Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

BIIBRBC CapitalMaintains277.0
RLICompass PointInitiates Coverage On90.0
CSCOWolfe ResearchDowngrades42.0
GILDRBC CapitalMaintains86.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at