:max_bytes(150000):strip_icc()/INV_Nike_GettyImages-1694835486-8adb5944a2e04de986e9c27293d59ec4.jpg "Nike shares recover after analyst confirms optimistic price target")
Key findings
- Bernstein Research analyst Aneesha Sherman reiterated her buy rating and $112 price target for Nike stock, sending the shoe giant’s share price higher.
- The analyst said she expects Nike’s sales to recover due to the company’s marketing spending and efforts to improve its relationships with retailers.
- Nike shares plunged in late June after disappointing fourth-quarter results. On Tuesday, the company was among the best performers in the S&P 500.
Nike (NKE) stock was among the best performers in the S&P 500 after a Bernstein Research analyst reiterated a buy rating on the stock with a price target of $112.
The company’s shares were trading about 5 percent higher late Tuesday, changing hands at about $78. Despite that gain, however, the stock is still more than 16 percent below its June 27 closing price, just before the company announced disappointing fourth-quarter results — and it’s down nearly 30 percent this year.
Bernstein’s Aneesha Sherman is bullish on Nike: Her $112 target is higher than that of all 20 analysts tracked by Visible Alpha. (Bernstein is not on this list.) Of those 20 analysts, half recommend buying the sportswear giant.
Nike shares “ready for recovery,” says analyst
“There’s a big lag between when you start working on things like innovation or regaining distribution and when the numbers actually start showing up,” Sherman said of Nike in an interview with CNBC last month.
Nike has been “hiring people and investing in research and development, putting more money into marketing on some of their product launches and rebuilding partnerships with retailers, and we’re in a trough where we haven’t seen any impact on sales yet,” Sherman said. “Once we see the brand momentum working and their efforts paying off, the stock will start to move back up.”
