Nike, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Aneesha Sherman from Bernstein maintained a Buy rating on the stock and has a $90.00 price target.
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Aneesha Sherman has given her Buy rating due to a combination of factors that highlight Nike’s positive trajectory. After experiencing a low point in Q4, Nike demonstrated a significant turnaround in Q1 with sales and margins surpassing expectations. The management’s confidence is evident as they provided guidance not only for Q2 but also qualitatively for the latter half of the year, indicating a recovery in progress.
Key growth areas such as Wholesale, Running, and North America are contributing to over 60% of the business returning to growth, with global order books showing promise for upcoming seasons. Although challenges persist in regions like China and segments such as Digital and Lifestyle, the overall momentum suggests a conservative guidance that could lead to potential earnings surprises throughout the fiscal year. While the Lifestyle segment remains a concern, the overall outlook is positive, supporting the Buy rating with an unchanged price target of $90.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $84.00 price target.