Baird dives in on two stocks dominating the consumer world, Tesla Motors Inc (NASDAQ:TSLA) and Nike Inc (NYSE:NKE). One analyst sees favorable catalysts ahead for the electric car giant, offering a third-quarter delivery preview before the numbers are released next week, whereas another analyst remains positive on the athletic retailer despite a mixed fiscal first quarter print. Let’s take a closer look:

Tesla Motors Inc

Baird analyst Ben Kallo weighs in on Tesla Motors ahead of the electric car giant’s release of third-quarter delivery numbers, anticipated early next week, likely by October 3rd. From Kallo’s perspective, taking low delivery expectations into account, a reflection of recent delivery messes, TSLA stock carries upside potential.

As such, the analyst reiterates an Outperform rating on shares of TSLA with a $338 price target, which represents a nearly 64% increase from where the stock is currently trading.

Kallo notes, “Additionally, we believe shorts may return to TSLA after the delivery announcement as the SCTY acquisition progresses. We believe several catalysts could drive shares higher as we approach year-end, including more details about the Model 3, gigafactory ramp, and energy storage contract wins.”

One catalyst points to the company’s two new large energy storage contracts, which Kallo views as “constructive” for the giant, bolstering its growing presence amidst the expanding battery as well as energy storage industries.

Kallo believes, “We continue to like SCTY as a short-term trade given the spread between SCTY’s share price and expected acquisition price.” Considering current levels, Kallo projects a prospective upside of about 13%, estimating that were the deal to go through today, SCTY shareholders would receive $22.64 per share.

“We continue to be favorable on the deal closing, although the risk/reward is less than when we first highlighted the spread […] That said, we expect the spread to continue to narrow as the shareholder vote nears,” the analyst concludes.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, two-star analyst Ben Kallo is ranked #2,318 out of 4,181 analysts. Kallo has a 43% success rate and gains 0.3% in his annual returns. When recommending TSLA, Kallo yields 15.2% in average profits on the stock.

TipRanks analytics demonstrate TSLA as a Hold. Based on 13 analysts polled in the last 3 months, 3 rate a Buy on TSLA, 6 maintain a Hold, while 4 issue a Sell. The 12-month price target stands at $222.33, marking a nearly 8% upside from where the shares last closed.screen-shot-09-29-16-at-01-26-pm

Nike Inc

Tuesday, Nike Inc posted its fiscal first-quarter results with an EPS beat thanks to revenue that performed better than initially anticipated and a solid grip on SG&A. However, gross margin proved to be less than stellar and futures hit the bottom edge of expectations.

In light of what Baird analyst Jonathan Komp views as a “mixed update,” despite the cautionary aspects of the athletic retailer’s quarterly results, the analyst reiterates an Outperform rating on NKE with a price target of $67, which represents just under a 26% increase from where the shares last closed.

However, Komp additionally trims forward estimates by about 2%, a reflection of lower gross margin, which the analyst sees as offset by both lower SG&A coupled with tax rate. Komp’s revised estimate for EPS for the fiscal year of 2017 is now $2.35, under consensus of $2.40, and the analyst notes this includes second fiscal quarter expectations of $0.43, also below consensus of $0.52.

Nike posted an EPS beat of $0.73 compared to the Street’s projection of $0.56, which also reflected an upside of EBIT, showcasing $0.03 in EPS as well as other income of $0.02 and tax favorability of $09.13. Though global futures of a positive 7% did fall to the low end of Kallo’s recent 7 to 9% anticipated range, the analyst recognizes strength in “implied growth” beyond North America.

The analyst asserts, “While perceived competitive threats may remain top-of-mind for investors, we note: (1) much-improved inventory positioning (down year-over-year, with off-price cleaner); (2) intentional restrictions for futures (only +1%) which should lead to FQ2-Q4 revenue>futures (opposite of trend experienced last year); and (3) management’s unwavering commitment to +high-single-digit growth through F2020; note that increased competition typically has made Nike a better competitor.”

Ultimately, “While the report is mildly disappointing, sentiment likely already reflected low expectations, and we remain optimistic that global brand strength and product/manufacturing innovation can support improvement as F2017 progresses, leading to a favorable risk/reward at current levels,” Komp contends.

According to TipRanks, four-star analyst Jonathan Komp is ranked #586 out of 4,181 analysts. Komp has a 62% success rate and earns 9.4% in his yearly returns. However, when recommending NKE, Komp loses 0.7% in average profits on the stock.

TipRanks analytics demonstrate NKE as a Buy. Based on 22 analysts polled in the last 3 months, 14 rate a Buy on NKE, while 8 maintain a Hold. The consensus price target stands at $62.20, marking a nearly 17% upside from where the stock is currently trading.screen-shot-09-29-16-at-01-57-pm