Nike Snaps Up Datalogue To Step Up Digital Push
Nike announced the acquisition of New York-based data integration platform Datalogue to accelerate its digital integration and boost sales growth. The athletic apparel giant did not disclose the terms of the transaction.
Nike (NKE) said that the acquisition of Datalogue start-up is a part of the company’s CDA [Consumer Direct Acceleration] strategy, which focuses on better serving its consumers. Nike CEO John Donahoe commented, “The acquisition of Datalogue builds on our digital momentum by enhancing our ability to transform raw data into actionable insights in real time and across the enterprise.”
Back in December, Nike reported better-than-expected 2Q results, driven by strong digital sales growth. The company’s 2Q revenue of $11.2 billion came in ahead of analysts’ expectations of $10.6 billion and grew 9% year-over-year. Adjusted earnings of $0.78 per share increased 11.4% year-over-year and exceeded the Street’s estimates of $0.63 per share. (See Nike stock analysis on TipRanks)
On Jan. 22, Williams Trading analyst Sam Poser initiated coverage on the stock with a Buy rating and a price target of $175 (22% upside potential). In a note to investors, Poser said that Nike will emerge as a strong player post-pandemic, as the company has continued to innovate and turned its focus on improving consumer engagement digitally.
Overall, the Street has a Strong Buy consensus rating based on 26 Buys, 2 Holds and 1 Sell. The average analyst price target of $163.71 implies upside potential of about 14.2% to current levels. Shares have by about 45.6% in one year.
Furthermore, NKE scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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