Goldman Sachs Bullish On Nike, Sees 14% Upside
Benzinga
Oct. 12, 2021, 09:29 AM
- Goldman Sachs analyst Kate McShane initiated coverage of Nike Inc (NYSE:NKE) with a Buy rating and $172 price target, implying a 14.56% upside.
- The analyst sees a "healthy industry backdrop with a company-specific continued focus on innovation to drive growth."
- Nike has room to expand its direct-to-consumer initiative, which should drive higher gross margins over time, says McShane.
- The analyst noted sourcing concerns are transitory and likely priced in following the recent selloff. In addition, its high cash balance should enable additional investment and capital return to shareholders.
- Price Action: NKE shares are trading higher by 1.68% at $152.8 in premarket on the last check Tuesday.
