Morgan Stanley Raises Nike Inc Price Target

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Morgan Stanley raised its price target for Nike Inc NKE from $88 to $105. According to a research note from Jay Sole and Joseph Watt, Nike will sustain a 16 percent three-year EPS CAGR.

Morgan Stanley claimed that EPS will increase due to “long-term investments made to improve product innovation, distribution, supply chain efficiency, and FX management.”

Nike is in the “early stages of major EPS growth acceleration” and its balance sheet “is helping it create a virtuous circle of outsized investment spending, operational excellence, brand strength, and ROIC gains.”

Sole felt that a bear case scenario could see the stock move to $75 if the company failed to meet sales targets. He maintained that a base of $105 is more likely and if sales accelerate faster than expected, the price could move to $132.

Nike closed at $82.12 on Monday.

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Posted In: Analyst ColorPrice TargetAnalyst RatingsJay SoleJoseph WattMorgan Stanley
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