Stocks

Nike Stock Is Having a Good Year -- and It Could Get Better

Goldman Sachs analyst Alexandra Walvis upgraded Nike stock to Buy from Neutral and added the stock to the firm’s conviction list. With the upgrade, Walvis becomes the 25th analyst with a Buy rating or equivalent, against eight Neutrals and two Sells.

Goldman Sachs analyst Alexandra Walvis upgraded Nike stock to Buy from Neutral and added the stock to the firm’s conviction list. With the upgrade, Walvis becomes the 25th analyst with a Buy rating or equivalent, against eight Neutrals and two Sells.

Nike stock has had a pretty good year—and it could get a lot better, if Goldman Sachs is correct.

Shares of Nike (ticker: NKE) have gained 26% in 2019, a touch better than the S&P 500’s 24% rise, and easily outpacing the Dow Jones Industrial Average’s 19% advance.

Despite that gain, Goldman Sachs analyst Alexandra Walvis upgraded Nike stock to Buy from Neutral and added the stock to the firm’s conviction list. With the upgrade, Walvis becomes the 25th analyst with a Buy rating or equivalent, against eight Neutrals and two Sells.

Why is Walvis suddenly bullish? We’re glad you asked, because she answers that question in a section entitled Why now? “Evidence of building pricing power, signs of operating leverage, accelerating shift to differentiated retail, sharply scaling app ecosystem, and a constructive global athletic growth backdrop,” Walvis writes.

Walvis upped her target price on Nike stock to $112, implying a 20% gain from Wednesday’s close of $93.72. Nike has gained 2.4% to $96 in premarket trading.

Write to Ben Levisohn at Ben.Levisohn@barrons.com

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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