Nike price target raised to $126 from $99 at Deutsche Bank

Deutsche Bank analyst Gabriella Carbone raised the firm’s price target on Nike to $126 from $99 and keeps a Buy rating on the shares. The analyst anticipates Nike’s fiscal Q2 earnings to generally meet consensus with softness in China offset by strength in North America. Looking at margins, while Carbone has seen promotional environment pick up, especially across athletic apparel, she thinks Nike guided Q2 appropriately and expects its margins to be down 370 basis points year-over-year versus guidance of down 350-400 points. Nike’s ending inventory will be key with investors looking for an improvement in order to get comfortable with the margin trajectory for the remainder of the year, Carbone tells investors in a research note.