Bank of America Securities analyst Lorraine Hutchinson reiterated a Buy rating on Nike today and set a price target of $84.00.
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Lorraine Hutchinson’s rating is based on a combination of factors that suggest a positive outlook for Nike’s future performance. Nike has been actively managing its inventory and enhancing its product innovation, which is expected to lead to a sales turnaround starting in the third quarter. This period is anticipated to benefit from strong wholesale activity and early demand related to the World Cup, despite some challenges from reduced direct-to-consumer promotions and past off-price sales.
Additionally, Hutchinson notes that Nike’s strategic partnership with Amazon aims to capture value-conscious consumers, a significant market segment. This approach is designed to attract customers who are looking for affordable options without affecting the sales of premium products. While the recovery in Greater China is expected to be gradual, the overall trajectory for Nike’s sales and gross margins appears promising, supporting the Buy rating.
In another report released on December 9, RBC Capital also maintained a Buy rating on the stock with a $85.00 price target.