Guggenheim Reaffirms Their Buy Rating on Nike inc (NKE)

Guggenheim analyst Robert Drbul maintained a Buy rating on Nike inc (NKE) today and set a price target of $100. The company’s shares closed last Monday at $88.08, close to its 52-week high of $90.

Drbul wrote:

“We expect China to be a major focus for management, both in regards to the current trade tensions and consumer demand in the region. NKE remains a global company, with a diverse sourcing, manufacturing, and selling footprint. While China remains a significant portion of the company’s manufacturing base and we expect the region to account for ~18% of Nike brand revenue in FY20E, we believe NKE is one the best positioned companies to navigate the current environment. Over the years, NKE has invested in and fostered a strong relationship with both the Chinese consumer and government, demonstrated by the robust growth over the past three years (added +$2.4bn in top line from FY16-FY19). While concerns are warranted given the size and the scope, we remain confident in NKE/management’s ability to drive continued outperformance.”

According to, Drbul is a 5-star analyst with an average return of 8.1% and a 65.9% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Capri Holdings Limited, and Ralph Lauren Corp.

Nike inc has an analyst consensus of Moderate Buy, with a price target consensus of $94.83, representing an 8.2% upside. In a report issued on September 10, Wedbush also reiterated a Buy rating on the stock with a $96 price target.

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Based on Nike inc’s latest earnings release for the quarter ending May 31, the company reported a quarterly revenue of $10.2 billion and net profit of $989 million. In comparison, last year the company earned revenue of $9.94 billion and had a net profit of $1.09 billion.

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