JP Morgan Upgrades Nike to “Overweight” (NKE)
Analysts at JP Morgan upgraded athletic apparel giant Nike, Inc. (NKE) on Monday citing an optimistic growth outlook despite some short-term headwinds.
The analysts upgraded NKE from “Neutral” to “Overweight.” They also increased its price target from $50 to $64. This new target suggests a 17% upside to Friday’s closing price of $54.59.
A JP Morgan analyst commented, “While near-term headwinds (2H13 pricing, labor, Int’l concerns) are worth noting, earnings visibility is improved (vs. 3 months ago) given (1) robust multi-year product pipeline (Free & Lunar w/Flyknit the next leg), (2) China roadmap firmly in place (11%) w/ signs of European stabilization (22%), and (3) laser focus on total shareholder returns (NT & LT profit balance w/ capital allocation levers). Just Do It! – Upgrade to Overweight.”
Nike shares were up $1.09, or +2.00%, during pre-market trading on Monday.
The Bottom Line
Shares of Nike (NIKE) have a dividend yield of 1.54% based on Friday’s closing price of $54.59 and the company’s annualized dividend payout of 84 cents per share.
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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