Nike: shares rise after UBS upgrade

(CercleFinance.com) - Shares of Nike rose 3.
8% to 99.9 dollars in early morning trading on Monday after UBS upgraded the company to "buy" from "neutral."

The broker says that the world's biggest sports clothing maker is on the verge of a "new, extended period of elevated sales growth rates."

"We upgrade Nike to "buy" because we now think the market will pay a much higher P/E for Nike as it realizes how Nike's business model changes will make the company worth much more long-term," it wrote in a note.

UBS said that Nike's investment in product innovation, supply chain, and eCommerce have led it to raise its growth estimates for the US sports gear maker.

The broker also raised its corresponding target price from 103 dollars to 136 dollars.

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