Nike: Susquehanna raises target price.

(CercleFinance.com) - Susquehanna reiterates its "positive" rating on Nike and is raising its target price from 61 dollars to 64 dollars, saying that the US sports gear maker is "back on offense.
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According to the broker, the company's "solid beat" in the fourth quarter was concrete evidence that the group has finally "turned the corner."

"Looking ahead, it is clear to us that Nike will maintain the momentum that is beginning to build," Susquehanna says.

After Nike officially announced that it was launching a pilot scheme to sell directly on Amazon, the broker acknowledges that "there is certainly a significant sales opportunity," but also points out the "significant risks" involved.

"For one, Amazon would be the only customer that Nike wouldn't have significant leverage over given Amazon is around three times larger than Nike from a sales perspective," Susquehanna states.

"So if Nike ever felt that Amazon was not presenting its brand properly, Nike would have very little ability to apply pressure in order to force Amazon to improve presentation," it says.



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