Analyst upgrades Nike shares, says US prospects are improving as selling prices rise NEW YORK (AP) -- An analyst on Tuesday upgraded Nike Inc., due to its relatively cheap share price and the belief that the athletic apparel and footwear maker's U.S. prospects are improving.
Susquehanna Financial Group's John Shanley wrote in a note to investors on Tuesday that Beaverton, Ore.-based Nike's U.S. market share is growing despite a difficult economic environment.
He upgraded Nike to a "Positive" rating from "Neutral" with a $70 price target.He said the company has made "strong gains" in domestic market share over the past two years. Higher average selling prices are helping to offset overall slowing unit growth, and retail expansion should also help results, Shanley said.
Additionally, he said that any potential downside risk for the company over the next 12 months may already be priced into the stock, which has fallen 13 percent since the beginning of the year.
"We believe Nike's dominant U.S. market share position in the athletic footwear segment of the market, its well-diversified brand portfolio, and its growing presence in developing markets such as China and Russia should allow the company to better navigate through these difficult macroeconomic conditions than many of it competitors," Shanley wrote.
http://biz.yahoo.com/ap/080715/nike_ahead_of_the_bell.html?.v=1Current Price: 57.29
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