Nike: Bank of America maintains buy rating
(CercleFinance.com) - Bank of America reiterated its buy rating on Nike shares on Friday, along with its target price of 165 dollars, after the US sports goods maker's published its quarterly results.
While noting that revenue growth came in well below market expectations, BofA said that this was due to congestion in port areas, which caused delays in deliveries to customers.
The lag means that Nike should make up lost ground in the current quarter, the broker points out, raising its annual EPS forecast for the group as a result.
The broker still believes that Nike will continue to benefit from strong products, including footwear brands such as Air Force 1, Air Jordan 1 and Retro Jordan, and more recently the Nike Blazer and Nike Dunk lines.
Despite these comments, the share is down almost 4% in early trading on Wall Street this Friday.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
While noting that revenue growth came in well below market expectations, BofA said that this was due to congestion in port areas, which caused delays in deliveries to customers.
The lag means that Nike should make up lost ground in the current quarter, the broker points out, raising its annual EPS forecast for the group as a result.
The broker still believes that Nike will continue to benefit from strong products, including footwear brands such as Air Force 1, Air Jordan 1 and Retro Jordan, and more recently the Nike Blazer and Nike Dunk lines.
Despite these comments, the share is down almost 4% in early trading on Wall Street this Friday.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.