It’s not every day that you hear about footwear giant Nike (NYSE:NKE) throwing lawsuits around. Today, though, was something wholly different as it filed suit against two of its biggest competitors. The news wasn’t exactly welcome to investors, though, who sent shares down fractionally in the closing minutes of Wednesday’s trading session.
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Nike took aim at two competitors: New Balance, which is privately held, and Skechers (NYSE:SKX), over one key point: shoe construction. Nike alleges that both New Balance and Skechers stole a technology known as “Flyknit,” which Nike calls “game-changing,” and used said technology in the construction of their own footwear. The end result: a line of lightweight running shoes.
Nike not only demanded a halt to the sales of some of each company’s products but also called for an unspecified amount of damages. This isn’t the first time, either; Nike recently took on Adidas (OTHEROTC:ADDYY) and Puma over Flyknit, and there’s an ongoing case with Lululemon (NASDAQ:LULU) as well.
Is Nike Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NKE stock based on 18 Buys and 10 Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average NKE price target of $118.48 per share implies 8.33% upside potential.
