Raymond James analyst Rick B. Patel has reiterated an Outperform rating on Nike’s shares with a price target of $130. Despite the likely mixed Q3 results, the analyst remains bullish on Nike’s FY24 margin setup.
One positive indicator for Nike is the number of time users spent in aggregate on the Nike mobile app, which increased by 34% year-over-year in F3Q, indicating strong growth in engagement. This is a promising sign for the company, as engagement is a critical metric in the success of digital commerce.
While the negative read-through from Kohl’s Corporation and Macy’s Inc. is a concern, Caleres, Inc.’s robust demand for key athletic brands and Dick’s Sporting Goods Inc.’s favorable athletic trends are considered positive indicators for Nike.
Investors should note that Nike’s Q3 results are likely to be mixed, and the negative read-through from Kohl’s Corporation and Macy’s Inc. could impact the stock’s performance. However, Patel’s Outperform rating and a price target of $130 suggest that he remains confident in Nike’s long-term growth prospects.
NKE Stock Performance: How Nike is Faring in the Market
Nike, Inc. (NKE) is a well-known apparel and footwear company with a significant presence in the sports industry. Today’s trading saw the stock open at $121.17, up from the previous close of $120.65, with a day’s range of $118.67 – $121.73. With a market cap of $182.2B and a volume of 12,868,912, NKE is a highly traded stock.
Growth and Valuation
NKE’s earnings growth last year was +5.18%, while this year, it has seen a decrease of -16.50%. In the next five years, earnings growth is expected to increase by +7.13%. Revenue growth has also seen a positive trend, with an increase of +5.17% in the last year.
The stock’s price-to-earnings ratio (P/E ratio) is currently not measurable (–), while its price-to-sales ratio is 4.09, and its price-to-book ratio is 12.08. These ratios give investors an idea of the stock’s valuation, which is crucial when making investment decisions.
Competitors
NKE’s competitors in the apparel and footwear industry include Deckers Outdoor Corp (DECK) and Crocs Inc (CROX), among others. DECK had a -1.08% change in today’s trading, while CROX had a -1.11% change, with similar market caps to NKE.
Financials
NKE’s next reporting date is March 22, 2023, with an EPS forecast of $0.55 this quarter. The company’s annual revenue in the last year was $46.8B, while its annual profit was $6.0B, resulting in a net profit margin of 12.92%.
Profile
NKE operates in the consumer non-durables sector and is a part of the apparel and footwear industry. It is headquartered in Beaverton, Oregon, and has no executives to display publicly.
Nike Inc. (NKE) Stock Price Forecast: Analysts Predict a Promising Future
Nike Inc. (NKE) is a well-known sports apparel and footwear company. According to the latest stock price forecast, the 30 analysts offering 12-month price forecasts for NKE have a median target of $133.50, with a high estimate of $185.00 and a low estimate of $85.00. The median estimate represents a +10.89% increase from the last price of $120.39.
Analyst Recommendations
The current consensus among 37 polled investment analysts is to buy stock in Nike Inc. This rating has held steady since March, indicating that the general sentiment surrounding the stock remains positive. The stability of the rating suggests that analysts believe that NKE is poised for growth in the coming months.
Stock Price Forecast
The stock price forecast for NKE provides investors with insight into the potential growth prospects of the stock in the coming months. The median target of $133.50 suggests that analysts are bullish on the stock’s future performance and expect a significant increase in its value.
It’s worth noting that stock price forecasts are not guaranteed and can be influenced by various factors, including changes in the sports apparel and footwear market and overall economic conditions. Investors should thoroughly research and consider all available information before investing in NKE or any other stock.
Conclusion
Despite the likely mixed Q3 results, Raymond James analyst Rick B. Patel’s reiteration of an Outperform rating and price target of $130 for Nike’s shares suggests that the company remains in a strong position. The increase in engagement on the Nike mobile app and the positive read-through from Caleres, Inc. and Dick’s Sporting Goods Inc. are promising signs for the company’s future growth.
However, investors should remain vigilant and conduct thorough research before making investment decisions, particularly in light of the potential impact of negative read-through from Kohl’s Corporation and Macy’s Inc.
NKE’s presence in the sports industry and its positive revenue growth are promising signs for investors. However, the company’s recent decline in earnings growth may cause some investors’ concerns. The stock’s valuation is also a consideration when making investment decisions. As with any investment, conducting thorough research before investing in NKE or any other stock is crucial.
The buoyant stock price forecast and the buy rating from investment analysts suggest that Nike Inc. is poised for growth in the coming months. However, investors should remain cautious and conduct thorough research before making investment decisions, particularly in light of the potential impact of economic and market conditions on the stock’s performance. As with any investment, staying informed and taking a long-term approach to investing is crucial.