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Nike’s Target Cut at Janney Montgomery Scott, but Still a “Buy” (NKE)

By Dividend.com,  June 21, 2012, 09:18:47 AM EDT

Athletic footwear and apparel maker Nike, Inc. ( NKE ) on Thursday caught some mixed commentary from analysts at Janney Montgomery Scott.

The firm maintained its "Buy" rating on Nike but lowered its price target from $127 to $123. Thta new target suggests a smaller 22% upside to the stock's Wednesday closing price of $101.20.

A Janney Montgomery Scott analyst commented, "Into the NKE 4Q print next week, we remain positively biased on longer-term fundamentals and think near-term risk/reward has improved as sentiment in the name has weakened of late (owing to Europe exposure, chatter on China softening), resulting in too-high competitor estimates being revised downward, which has put pressure on the shares over the last month (NKE off ~4% vs. +5% for S&P). While we expect top line trends to moderate (against stiffening compares and building FX headwinds), the market could over-read this 'softening' as an end to cycle/pipeline/global growth - at the quarter, we expect shares to trade on 1) future orders (5-6 month order book) and 2) FY13 EPS guide."

Nike shares were mostly flat in premarket trading Thursday.

The Bottom Line
Shares of Nike ( NKE ) have a 1.42% dividend yield, based on last night's closing stock price of $101.20. The stock has technical support in the $97-$101 price area. If the shares can firm up, we see overhead resistance around the $105-$110 price levels.

Nike, Inc. ( NKE )is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: NKE



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