Skip to main content

Market Overview

Why The Nike Bull Thesis Actually Just Got Stronger

Why The Nike Bull Thesis Actually Just Got Stronger

Shares of Nike Inc (NYSE: NKE) were trading lower by more than 4 percent Wednesday morning in reaction to a mixed earnings report, but some analysts remain as bullish as they were heading into the print. Morgan Stanley's Jay Sole maintains an Overweight rating on Nike's stock with a price target lowered from $64 to $62 as the earnings report solidified the bullish case for owning the stock.

Heading into the earnings report the key debate surrounding Nike was if the "innovation engine is broke," Sole commented. The earnings report suggests that "bulls are more likely to win" the debate as management said that Air VaporMax shoe holds the biggest market share within the $150-and-up price point. This implies that Nike is outselling adidas AG (ADR) (OTC: ADDYY)'s highly touted Ultra Boost and proof it can still innovative.


Another key debate heading into the earnings report surrounds the company's North American business and if it can "fix" its recent struggles, the analyst continued. There are four reasons to point to future strength, including:

    1. A re-implementation of the MAP pricing policy.
    2. A pull back from "unhealthy" distribution venues.
    3. A commitment to solidifying the Jordan brand.
    4. Ongoing adaptation to the lifestyle fashion trend in an "authentic" way.

"These courageous and arguably unexpected steps partially explain weak North America guidance," Sole concluded. "Yet, they are critical in our view for Nike to ultimately resume healthy North America growth."

Related Links:

Analyst Sizes Up Nike, Finds A Buy Rating Still Fits

5 Biggest Price Target Changes For Wednesday

Latest Ratings for NKE

Feb 2021HSBCUpgradesHoldBuy
Jan 2021KeyBancMaintainsOverweight
Dec 2020Raymond JamesMaintainsOutperform

View More Analyst Ratings for NKE
View the Latest Analyst Ratings


Related Articles (NKE)

View Comments and Join the Discussion!

Posted-In: Analyst Color Earnings Long Ideas News Reiteration Sports Analyst Ratings Movers Best of Benzinga

Latest Ratings

FSRMorgan StanleyMaintains40.0
MEDDA DavidsonMaintains302.0
VICRBWS FinancialMaintains120.0
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.
Everything you need to know about the latest SPAC news.
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