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Nike's Colin Kaepernick Ad 'Had The Intended Effect,' Canaccord Genuity Says After Survey

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Nike's Colin Kaepernick Ad 'Had The Intended Effect,' Canaccord Genuity Says After Survey

Nike Inc (NYSE: NKE)’s decision to partner with Colin Kaepernick has generated an enormous amount of media coverage and led to its stock hitting all-time highs. The move may have also potentially turned non-Nike buyers onto the swoosh, according to Canaccord Genuity. 

The Analyst 

Analyst Camilo Lyon reiterated a Buy rating on Nike with a $95 price target.

The Thesis

Nike’s "Just Do It" ad campaign prominently featuring Colin Kaepernick was viewed positively, according to a new survey of 1,000 respondents conducted by Canaccord Genuity. 

While the commercial saw considerable backlash from featuring the former NFL star, 34 percent of non-Nike consumers said they were now extremely likely to make a purchase after watching Nike’s ad with the tagline: “Believe in something. Even if it means sacrificing everything.”

Key Findings

  • 51 percent support the ad.
  • 64 percent of men and 47 percent of women support the ad. 
  • 31 percent said they would absolutely purchase more Nike products after seeing the ad.
  • 14 percent said they would absolutely purchase less Nike products. 
  • 36 percent said they would absolutely recommend Nike to a friend or family member.
  • 15 percent said they would absolutely not recommend Nike.

Thirty-eight percent of respondents said they were neutral in their future purchase intent, signaling no immediate or lasting damage to the brand, Lyon said. (See his track record here.) 

“Based on these insights, we can comfortably conclude that the ad has had the intended effect of positively skewing NKE’s brand perception and likely providing a bump in sales." 

Price Action

Nike shares were up 2.4 percent at the close Tuesday at $85.26. 

Related Links:

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Analysts Upgrade Nike On $50B Revenue Potential, Direct-To-Consumer Growth

Screenshot courtesy of Nike. 

Latest Ratings for NKE

DateFirmActionFromTo
Aug 2019MaintainsOverweight
Jul 2019MaintainsOverweight
Jun 2019MaintainsNeutral

View More Analyst Ratings for NKE
View the Latest Analyst Ratings

Posted-In: Camilo LyonAnalyst Color News Price Target Reiteration Crowdsourcing Analyst Ratings General Best of Benzinga

 

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