Street Calls of the Week
Investing.com - BofA Securities maintained its Buy rating and $84.00 price target on Nike (NYSE:NKE) on Wednesday, citing expectations for second-half stabilization. The athletic wear giant, currently trading at $73.17 with a market capitalization of $108 billion, shows mixed signals according to InvestingPro data, trading at relatively high earnings and EBITDA multiples.
The firm anticipates Nike will provide second-quarter guidance showing sequential sales improvement from mid-single-digit declines in the first quarter, which would represent positive momentum toward returning to growth in the second half of the fiscal year. With annual revenue of $46.3 billion and analyst consensus remaining moderately bullish, the company’s recovery trajectory is closely watched.
BofA noted that back-to-school trends in the United States were solid and expects similar performance from Nike in this important retail period.
The research firm believes a message of improving sales trends, combined with confirmation that inventory levels are healthy in distribution channels and on track to be clean by the end of the first half, would validate its recovery thesis.
Nike’s stock rating reaffirmation comes as the athletic apparel and footwear giant continues navigating a challenging retail environment while positioning for improved performance in coming quarters.
In other recent news, Nike has seen several developments that could interest investors. TD Cowen upgraded Nike’s stock rating from Hold to Buy, citing margin recovery potential and raising the price target to $85.00. The firm highlighted Nike’s iconic brand status, potential earnings per share of over $4, and $6 billion in free cash flow as key factors in the upgrade. Meanwhile, Williams Trading also increased its price target for Nike to $100.00, maintaining a Buy rating and anticipating positive sales and margin trends in the coming weeks. In contrast, UBS maintained a Neutral rating with a $63.00 price target, suggesting that Nike’s turnaround efforts may take longer than some expect. Additionally, Deutsche Bank raised its price target for JD Sports Fashion, noting potential visibility on a Nike comeback as a contributing factor. These recent developments reflect varying perspectives on Nike’s financial outlook and market positioning.
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