Nike upgraded to Outperform from Perform at Oppenheimer

Oppenheimer analyst Brian Nagel upgraded Nike to Outperform from Perform with a price target of $120, up from $110. Nike over the past several quarters has “struggled significantly amid a confluence of unfavorable external and internal hindrances,” which have weighed meaningfully upon sales growth and profit expansion, the analyst tells investors in a research note. The firm says that while Inkle’s challenges persist, it is increasingly of the view that multiples at which shares trade and nearer-term financial expectations are now largely “derisked” and poised to rebound gradually. Opco’s more constructive call on shares is generally intermediate to longer-term in focus. The firm reinstated Nike s a top mega-cap pick across its coverage. It believes a turnaround is underway at Nike as senior leadership recently outlined a significant cost re-alignment and strategic re-focusing geared towards strengthening innovation and marketing and re-establishing key consumer touchpoints.