BMO Capital analyst Simeon Siegel maintained a Buy rating on Nike yesterday and set a price target of $92.00.
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Simeon Siegel has given his Buy rating due to a combination of factors that highlight Nike’s strategic positioning and potential for future growth. Despite encountering challenges such as declines in unit sales and gross margin contractions across regions, Nike’s robust brand presence and substantial advertising budget are expected to drive long-term competitive advantages. The company’s unmatched scale and scope, particularly in North America, position it favorably for sustained market leadership.
Furthermore, Nike’s Women’s business, although facing a narrowing gap with competitors like Lululemon, remains a significant revenue driver, supported by a strong Footwear segment. The company’s ability to grow its top three U.S. customer penetration and maintain a large factory base with a diversified manufacturing exposure also contribute to its positive outlook. These factors collectively underpin Siegel’s confidence in Nike’s ability to outperform in the market, justifying the Buy rating.
In another report released on July 15, Bernstein also maintained a Buy rating on the stock with a $85.00 price target.