Nike stock is near all-time highs. This is how it could go higher.

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Women’s gear remains a big opportunity for Nike, according to John Kernan of Cowen & Co.

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Nike

stocks jumped 37% in 2020 and are near all-time highs. Still, Cowen & Co sees the rally continuing and believes the market is underestimating the earnings power of the sports equipment giant.

Analyst John Kernan reiterated an outperform rating on Nike (ticker: NKE) on Tuesday, while raising his share price target to $165 from $150, making him one of the most optimistic analysts followed by FactSet. He wrote that consensus expectations are too low for earnings per share and revenue in fiscal year 2022 – Nike’s year ends in May – and that the company’s ability to surprise on the upside will bring more earnings.

Data from Kernan, which tracks top-selling items on Nike’s own website, as well as third parties such as


Foot locker

(FL), show that consumers buy a more diverse range of products from the company. He believes women’s gear “remains a huge opportunity” and that average selling prices may continue to rise on the company’s hottest items, like its VaproMax, Air Max and Flyknit shoes.

He noted that data from Google Trends shows that more shoppers are searching for Nike in recent months, while the company also appears to be running no promotions during the Black Friday-Cyber ​​Monday long weekend. This is another indication that Nike is resonating with consumers, who are willing to pay for its products.

Ultimately, Kernan believes Nike will be able to hit $6 in earnings per share, up from just over $3 he’s hoping for this year, thanks to “Nike’s global position in sports and fashion.” and its numerical growth”. And while the shares are trading at a premium, that’s warranted given the transformation the company is going through, he said.

Nike stock rose 0.2% to $139 in early trading. Other analysts have also touted the stock’s potential. The company increased its dividend last month.

Write to Teresa Rivas at [email protected]

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