Nike, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Sam Poser from Williams Trading maintained a Buy rating on the stock and has a $100.00 price target.
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Sam Poser has given his Buy rating due to a combination of factors that suggest a positive outlook for Nike’s financial performance. He anticipates that Nike’s sales and profit margins will begin to improve significantly within the next six weeks, with the U.S. market expected to be largely cleared of excess inventory by the end of September. Although some styles still have surplus stock, the ongoing cleanup in Greater China is projected to show results in the next 6 to 9 months.
Additional reasons for the positive rating include the expected year-over-year increase in holiday orders, driven by new product offerings. Sales of the Air Force One at full price are showing positive trends, and U.S. retailers are satisfied with the upcoming Jordan Retro and other product lines. Furthermore, Nike’s wholesale activities, including a new partnership with Amazon, are expected to boost results, and the reopening of wholesale distribution to several retailers is anticipated to contribute positively over the coming months.
Poser covers the Consumer Cyclical sector, focusing on stocks such as Nike, Canada Goose Holdings, and Crocs. According to TipRanks, Poser has an average return of 17.6% and a 52.53% success rate on recommended stocks.
In another report released on August 20, Jefferies also maintained a Buy rating on the stock with a $115.00 price target.