NIKE +3% at all time high: Color on Quarter
- Telsey Advisory Group raises their NKE tgt to $144 from $142. Nike reported solid 2QF16 results and kept its guidance despite higher F/X headwinds and a choppy retail environment. Meanwhile, futures continued to impress on the upside and reinforces their view that the brand remains strong and continues to take share. They are passing along some of the beat and increasing their FY16 EPS estimate to $4.44 while their FY17 EPS estimate moves up to $5.13. They continue to view NKE as a best-in-class player within the attractive and outperforming sporting goods sector.
- Stifel notes Q2 results and an impressive order book highlight NIKE's strong positioning and the power of global and product line diversity. They continue to see NIKE as a standout in a challenged consumer discretionary investment landscape and accordingly see it deserving of a premium valuation. While FY3Q will feel some margin pressure in North America, ASP growth and mix to both higher margin regions (China and Western Europe) and DTC suggests NIKE will enjoy these tailwinds and the margin benefits for the foreseeable future and they continue to view NIKE shares as a solid core holding for large cap growth investors; $146 tgt.
- Jefferies raises tgt to $152 from $150
- Deutsche tgt to $150 from $140
- NKE +3% at all time high premarket; note 2:1 stock split goes in to effect tomorrow.