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Nike’s Target, Estimates Lowered at Jefferies; Still a “Buy” Ahead of Earnings (NKE)

By Dividend.com,  June 25, 2012, 09:02:59 AM EDT

Athletic footwear and apparel maker Nike, Inc. ( NKE ) on Monday caught some mixed commentary from analysts at Jefferies & Co.

The firm maintained its "Buy" rating on NKE but cut its price target from $130 to $115. That new target suggests a 15% upside to the stock's Friday closing price of $99.40.

A Jefferies analyst commented, "We think a toppy sales environment, China angst and FX headwinds make NKE vulnerable ahead of Thursday's F4Q report. The stock has corrected some but still has near-term risk, in our opinion, as investors demonstrate a greater sensitivity to negative news than positive in this environment. Would use near-term weakness to accumulate given strong product innovation, geographic distribution opportunities and best-in-class business model."

As a result, the firm cut its earnings estimates for the company through 2013.

Nike shares fell $1.21, or -1.2%, in premarket trading Monday.

The Bottom Line
Shares of Nike ( NKE ) have a 1.45% dividend yield, based on Friday's closing stock price of $99.40. The stock has technical support in the $95 price area. If the shares can firm up, we see overhead resistance around the $105-$108 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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