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Jefferies Starts Coverage on Nike as a “Buy” (NKE)

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.

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 Nasdaq, Inc.

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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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