McAdams Wright Ragen Reaffirms “Hold” Rating on Nike (NKE)
On Friday analysts at McAdams Wight Ragen maintained a “Hold” rating on Nike, Inc. (NKE) despite positive second quarter results. The analysts prefer a better entry point to take advantage of the athletic apparel company’s potential growth.
A McAdams Wright Ragen analyst noted, “The strength of Nike’s brands and its history of consistent execution give us confidence in its longer-term prospects. While we believe there is moderate potential upside in the shares over the next 12-24 months, we prefer a better entry point to provide not only better potential returns, but also to insulate from the downside risks inherent in a still-choppy global economy.”
Nike shares were down 70 cents, or -1.35%, during morning trading on Friday. The stock is up +6.1% year-to-date.
The Bottom Line
Shares of Nike (NKE) have a 1.64% dividend yield, based on the latest intraday stock price of $51.20. The stock has technical support in the $48 price area. If the shares can firm up, we see overhead resistance around the $54 price level.
Nike, Inc. (NKE) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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