Nike: Credit Suisse maintains 'outperform' rating
(CercleFinance.com) - Credit Suisse maintains its "outperform" rating on Nike, along with a target price of 78 dollars, betting on improving market share at the world's largest footwear maker.
In a note sent to clients, the broker said that recent margin headwinds (FX and excess markdowns) are finally about to diminish, supporting upside to the group's gross margin.
"And, with a much better consumer response to new innovation lately, our global industry checks suggest retailers are starting to pivot back to Nike to drive growth," it added.
"While valuation is pricey (...), we continue to recommend looking through near-term investment-related EPS headwinds-with high confidence that Nike will be able to monetize improving revenue/market share trends in the medium/longer term," Credit Suisse said.
After these comments, Nike shares were up 1.2% on Thursday, while the Dow Jones was up just 0.4%.
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