There are bulls and there are bulls behind certain high-profile stocks on the exchange. As February began to melt into March, one analyst became suddenly, and extremely, positive about Nike's (NKE 4.94%) future, to the point where he flagged the stock as having 50% upside potential. That's an awfully high number for such an established business; let's determine if it's realistic.
On the last Monday of the month, Jefferies analyst Randal Konik upgraded his recommendation on Nike stock to buy from his previous hold. More dramatically, he made a serious lift to his price target, sending it on a rocket to $115 per share from the comparatively modest level of $75.
According to reports, Konik's new view of the athletic shoe and apparel specialist is based to no small degree on its leadership. He wrote in his update that recently installed CEO Elliott Hill is effectively managing some of the company's most pressing problems, including challenges in its distribution system.
The analyst added that surveys indicate that Nike's brand remains extremely strong, which to him demonstrates that its problems were internal rather than the fault of any external factors. Konik imagines a "v-shaped recovery" in both profit margins and per-share earnings; for the latter in Nike's fiscal 2027 he's modeling a much higher result than the current consensus estimate ($3.50, against $2.95).
Lately, it feels that Nike has the momentum of a determined athlete working to get over a slump. Elliott does indeed seem to be having quite a positive effect on the company's operations, not least in its deal-making.
Earlier in February it signed a cooperation deal with Skims, an athleisure wear brand co-founded by popular reality TV star Kim Kardashian. The teaming up of Nike and a major celebrity alone will generate interest in the upcoming NikeSKIMS line.
I wouldn't underestimate Nike at all. Like Konik, I think the company is full of potential and it's starting to realize it. I'd be very bullish on its prospects, too.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。