Nike Stock Jumps On Upgrade To Buy As Analyst Says It's 'Time To Just Do It'
Portfolio Pulse from Adam Eckert
Nike Inc (NYSE:NKE) shares rose after BofA Securities upgraded the stock from Neutral to Buy, raising the price target from $110 to $113. The upgrade was based on full-year earnings estimates for Nike, which have become more achievable, and the stock's valuation at a 10-year low on a price-to-earnings basis. BofA analyst Lorraine Hutchinson highlighted Nike's potential for mid single-digit revenue growth, margin expansion, and upcoming catalysts such as the company's first investor day in seven years and the Olympics. The $113 price target is based on a 1.2x multiple on 25 times forward 2026 earnings.
April 11, 2024 | 7:05 pm
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POSITIVE IMPACT
Nike's stock received a positive outlook from BofA Securities, with an upgrade from Neutral to Buy and a price target increase from $110 to $113. This reflects confidence in Nike's future performance, driven by achievable earnings estimates, strategic transformations, and marketing opportunities around the Olympics.
The upgrade by BofA Securities is a strong positive signal for Nike, indicating a bullish outlook on the stock's future performance. The raised price target and upgrade to Buy reflect an analysis that considers Nike's current valuation attractive, its strategic initiatives promising, and upcoming events like the Olympics as opportunities for increased visibility and sales. The immediate positive reaction in Nike's stock price following the announcement underscores the market's positive reception of the upgrade.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100