On Wednesday, December 21st, UBS Securities released a research report on the Nike stock forecast and maintained the “Buy” rating, while raising the 12-month target price to $146 from $141.
Nike Stock Forecast:
According to the Nike stock forecast from 30 analysts, the company’s average 12-month target price is USD 123.23. The consensus analyst rating for Nike Inc. (NKE:NYE) is Strong Buy.
Nike stock forecast analysis by Stock Target Advisor is Slightly Bullish and is based on 8 positive and 6 negative signals.
Nike stock price was US$103.21 at the most recent close. Over the last week, month, and year, Nike Inc.’s stock price has changed by -8.54%, -2.10%, and -34.25%, respectively.
Nike Inc. News:
The company’s shares increased during intra-trade on Wednesday as better-than-expected sales and profitability eased, for the time being, investor concerns that Nike would suffer from sluggish global economic development.
The company’s noticeable progress in reducing its excess inventory, which was brought on earlier this year by the economic downturn, was what really stood out about Nike’s second fiscal quarter compared to the previous three months.
Analysts have argued that it is a problem that has negatively impacted both profit margins (since Nike aggressively liquidated items) and the Nike stock price.
Nike’s inventory decreased by 3% sequentially as a result of a high-single-digit percentage decline in the number of units sold. Comparing the second fiscal quarter to the first, total inventory units decreased by a double-digit percentage.
On a conference call with investors, management stated that it remains committed to removing inventory, mainly through discount retail outlets. In the year 2023, further, development is anticipated, including a more cautious approach to purchasing new goods.
Nike CEO John Donahoe said, “We feel the inventory peak is behind us, and the efforts we’re doing in the market are working”.
If the world economy doesn’t collapse, the inventory improvement will allow Nike to enjoy higher profit margins in the ensuing quarters.
Jefferies and Company maintained their “Buy” rating, and $140 target on the stock and stated “We think Nike’s second-quarter results demonstrate the brand’s continued strength, the Direct to Consumer and Digital profit drivers, and the robust worldwide demand. We anticipate that declining inventory levels and China-related problems will result in margin expansion. We raise our projections and suggest buying Nike stock and selling Lululemon stock (LULU:NSD)”.
BMO Capital Markets kept the “Outperform” rating, with a $120 target on the stock, and says of the company “In the future, we anticipate that GM guidance will once again prove conservative and note that, in contrast to the majority of retail, where the pandemic revenue pull-forward is having a negative impact on top-line, NKE is experiencing material N.A. strength, with wholesale receiving an intriguingly positive call-out this quarter. With top-line progress and China’s improvement, comparisons are considerably lessening”.
Company Profile:
NIKE Inc. together with its subsidiaries, designs, develops, markets, and sells men’s, women’s, and kids athletic footwear, apparel, equipment, and accessories worldwide.
The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks.
In addition, it sells a line of performance equipment and accessories comprising bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities under the NIKE brand; and various plastic products to other manufacturers.
The company markets apparel with licensed college and professional team, and league logos, as well as sells sports apparel. Additionally, it licenses unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks.
The company sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives.
The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.
