Athletic footwear and apparel maker Nike, Inc. ( NKE ) on Friday saw its coverage initiated with a "Buy" rating by analysts at Jefferies & Co.
The firm also set a $100 price target on NKE shares, which suggests a 23% upside to the stock's Thursday closing price of $81.15.
A Jefferies analyst commented, "We like Nike for its dominant global market leadership position in an athletic category that has both cyclical and secular tailwinds. Other attributes of note include a $4 billion net cash balance, a home-grown management team, and sizable emerging market exposure. Gross margin headwinds are a near-term drag but now appear priced in and poised to positively inflect 6-9 months from now."
Nike shares were mostly flat in premarket trading Friday.
The Bottom Line
Shares of Nike ( NKE ) have a 1.53% dividend yield, based on last night's closing stock price of $81.15. The stock has technical support in the $75-$76 price area. If the shares can firm up, we see overhead resistance around the $85-$87 price levels.
Nike, Inc. ( NKE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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