Nike price target raised to $112 from $105 at Piper Sandler

Piper Sandler analyst Abbie Zvejnieks raised the firm’s price target on Nike to $112 from $105 and keeps a Neutral rating on the shares. Nike continues to clear through inventory, but while the Q3 results were strong, the full year guidance and China progress fell short, the analyst tells investors in a research note. The firm is encouraged by Nike’s product innovation, but thinks its recent revenue growth was bolstered by promotional activity and sell in to wholesale. Piper sees "clear opportunities" for margin expansion in fiscal 2024 as liquidation normalizes and China recovers, but says the stock’s valuation already represents a significant premium to peers.