Nike: buy shares on weakness, Susquehanna says.

(CercleFinance.com) - Susquehanna maintains its "buy" rating on Nike shares, recommending investors take advantage of any weakness after the company unveiled its third-quarter results.


The brokerage firm - which has trimmed its target price from 65 dollars to 64 dollars - admits that gross margins were a touch light in the quarter, but points out that revenue was pretty much in line, with notably strong cost control on the selling, general and administrative expense (SG&A) line.

According to Susquehanna, it is obvious that Nike's new and existing initiatives will drive earnings upside in the coming quarters.

Amongst "levers" at its disposal to drive earnings upside going forward, in particular the broker sees the scale of innovation and average speed-to-market of new products being reduced from an average of six months to around three months.

Nike shares are currently down 6.2% at 54.4 dollars.

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