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Am thinking they will turn those resignations into a positive spin come that conference call and talk up Le Bron’s new shoes and the March Madness tournament
Strong positive report – will be interesting if they can achieve the North American turnaround as promised.
Merrill Lynch reiterated Underperform rating but raised price objective to $50 from $42.
Also raised its 2018 earnings estimate on lower tax rate guidance, noting that initial 2019 guidance is below a five-year growth algorithm and still sees pressure in North America while direct to consumer efforts were not growing as fast as hoped.
Wedbush reiterated Outperform rating and raised price target to $75 from $74
Says key initiatives designed to reignite Nike’s growth in North America and around the globe are gaining traction and were evident in its third-quarter results that beat across all lines.
Credit Suisse reiterated Outperform rating with $78 price target.
Nike is finally poised to reverse 2 years of share losses:
1) New innovation scaling (VaporMax selling “millions” of pairs, Epic React selling out);
2) North America momentum accelerating exiting third quarter (fourth quarter revenue guidance: flat vs third quarter: -6%);
3) Accelerating int’l momentum (revenues +19% in third quarter).We’re lowering fiscal 2019 EPS slightly to reflect our view that Nike plans to accelerate investments, as well as N. America revenues (despite improving) still below Nike’s +MSD algorithm (which should result in EPS below midteens algorithm). But with the key sentiment driver (N. America) starting to accelerate (US wholesale back to “pull-market”), & upside to +50 basis points gross margin guidance.
More Upgrades on Nike:
Canaccord Genuity has a Hold rating and raised its target to $62 from $60.
Deutsche Bank raised its price target from $75 to $76.
Instinet has a Buy rating and raised its target to $74 from $65.
Jefferies raised its price objective to $68 from $59.
Raymond James raised its target price to $75 from $67.
Susquehanna has a Neutral rating and raised its target from $60 to $62.
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