BMO Capital concerned that margin growth hopes for Nike are optimistic

BMO Capital analyst Simeon Siegel keeps an Outperform rating and $120 price target on Nike after its Q3 results, noting that while the company posted better revenues across regions, this was offset by worse gross margins. Nike continues to impressively grow revenues off its already-enormous base and its size and scale offer long-term competitive advantages, but BMO is fearful of flags around margins and remains concerned that hopes for meaningful margin growth appear optimistic, the analyst tells investors in a research note.