- Raymond James Analyst Rick B. Patel initiated the reporting Nike Inc NKE with an outperform rating of the shares and a Price target of $99.
- The analyst said Nike’s pre-COVID sales should grow by more than $7 billion by the end of FY23, but operating profit will rise due to temporary headwinds in sub-$100 million margins.
- Patel added that Nike shares are down 47% year-to-date due to the negative impact of increased inventories, China’s weakness amid COVID-19 policies and broader concerns about consumer behavior.
- also read: Nike lays out plan to prevent bot purchases
- After this Lead down in Q1 FY23the analyst believes much of the bad news is priced into the stock.
- He sees Nike’s underlying demand and brand strength as strong. He sees NKE in the midst of a multi-year journey to transforming it into a direct-to-consumer (DTC) model.
- Patel said the digital-led transformation will provide strong tailwinds for revenue and margin growth.
- Price promotion: NKE shares trade 0.08% lower at $88.44 on the last check Thursday.
- Photo via company
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