Stifel Nicolaus reported on Wednesday that they have reaffirmed
their "Buy" rating for footwear retailer, NIKE, Inc.(
NKE ), and have increased its price target.
The firm has maintained their "Buy" rating for NKE, and has
raised its price target from $104 to $110. This price target
suggests a 10% increase from the stock's current price of
An analyst from the firm noted, "behind continued domestic
momentum and signs of stabilization in overseas markets, we remain
confident in our 2QFY13 revenue and EPS estimates of $5.97bn and
$1.04 (consensus $6.00bn and $1.00). For futures, we expect
constant currency global futures growth of 7%-8%, perhaps a slight
moderation sequentially (+8% 1Q) behind strength from: 1) a modest
pricing benefit (we estimate 1pt.), 2) continued sell-through
momentum led by North America and Emerging markets, 3) accelerating
basketball momentum, 4) expanded distribution of FlyKnit, and 5)
the incremental contribution from the NFL license (took over April
Nike shares were mostly flat during premarket trading Wednesday.
The stock is up 3% YTD.
The Bottom Line
Shares of Nike ( NKE ) have a .84% dividend
yield, based on last night's closing stock price of $99.41. The
stock has technical support in the $93-$95 price area. If the
shares can firm up, we see overhead resistance around the $104-$105
NIKE, Inc.( NKE ) is not recommended at
this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well
as a detailed explanation of our ratings system here .
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