Lorraine Hutchinson, an analyst from Bank of America Securities, maintained the Buy rating on Nike. The associated price target remains the same with $84.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Lorraine Hutchinson’s rating is based on Nike’s improving sales performance, primarily driven by strong unit volumes across various regions. Despite a slight decline in total sales, the increase in units sold, particularly in apparel and footwear, indicates a positive trend. This growth was supported by new distribution points and value channel sales, although Greater China experienced a decline in unit sales.
Additionally, while Nike’s gross margin contracted in the first quarter, there is an expectation of sequential improvement in the second half of the year. This anticipated improvement is due to the lapping of previous wholesale support actions, which should help offset challenges from tariffs and market fluctuations in China and Converse. Furthermore, Nike’s strategic decision to pause its share repurchase program to focus on brand investment and demand creation is seen as a positive move for long-term growth, reinforcing the Buy rating.
Hutchinson covers the Consumer Cyclical sector, focusing on stocks such as Nike, Tapestry, and Lululemon Athletica. According to TipRanks, Hutchinson has an average return of 5.0% and a 52.93% success rate on recommended stocks.
In another report released on October 2, KeyBanc also upgraded the stock to a Buy with a $90.00 price target.