Nike: Susquehanna raises target price; remains 'neutral'
(CercleFinance.com) - Susquehanna says it remains neutral on Nike, although has raised its target price for the share from 59 dollars to 64 dollars as it believes near-term trends are improving.
In a research note, the US broker points out that recent checks indicate that the apparel maker's new product platforms (VaporMax, Air Max 270, Epic React) are performing well at retail.
Although many platforms are performing well, and international growth is strong, Nike faces a steep climb to reach its 50 billion dollars revenue target, Susquehanna says.
The broker says positive mid single digit growth in North America is a key component to hitting the target, but visibility into whether Nike can grow at that pace, while keeping the brand sacrosanct, will likely not emerge until 2019, it says.
Also, Susquehanna has trimmed its EPS estimates to reflect headwinds from a stronger US dollar.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In a research note, the US broker points out that recent checks indicate that the apparel maker's new product platforms (VaporMax, Air Max 270, Epic React) are performing well at retail.
Although many platforms are performing well, and international growth is strong, Nike faces a steep climb to reach its 50 billion dollars revenue target, Susquehanna says.
The broker says positive mid single digit growth in North America is a key component to hitting the target, but visibility into whether Nike can grow at that pace, while keeping the brand sacrosanct, will likely not emerge until 2019, it says.
Also, Susquehanna has trimmed its EPS estimates to reflect headwinds from a stronger US dollar.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.