Analyst Points to Nike Inc (NKE) as Potential Tech Play
CNBC passes along the firm’s take on Nike.
Oppenheimer raised its rating on Nike shares to outperform from perform, saying the sportswear company is enhancing a globally dominant brand by investing in all things digital.
“A technological evolution is underway at Nike, whereby management is embracing the power of digital as a means to enhance most all aspects of Nike’s business model, including consumer connections, product innovation, and manufacturing,” Oppenheimer’s Brian Nagel said in a note Thursday. “Investors have still yet to grasp fully the degree to which a now enhanced business model of Nike will help to underpin improved results at the company, near and longer term.”
Oppenheimer currently has a $90 price target in place for Nike. Nagel also points to international markets as a growth area for Nike.
“Over the next few years, the global sportswear market is expected to expand by an annual mid-single digit rate, with China and Asia-Pacific and Latin America outpacing more mature markets,” he added. “In [fiscal year 2018], international accounted for over 55 percent of Nike brand revenues.”
Nike Inc shares rose $0.77 (+1.01%) in premarket trading Thursday. Year-to-date, NKE has gained 23.29%, versus a 6.47% rise in the benchmark S&P 500 index during the same period.
NKE currently has a StockNews.com POWR Rating of B (Buy), and is ranked #3 of 31 stocks in the Athletics & Recreation category.