Nike Stock Rebounds After Analyst Reaffirms Bullish Price Target
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Key TakeawaysBernstein Research analyst Aneesha Sherman reiterated a "buy" rating and $112 price target on Nike's stock, lifting the shoe giant's shares. The analyst hassaid she believes a rebound in Nike sales is on the horizon due to the company's marketing spending and work to repair relationships with retailers.Nike stock tumbled in late June after the company's fourth-quarter results underwhelmed. It was among the S&P 500's best performers on Tuesday.
Nike's (NKE) stock was among the S&P 500's best performers after an analyst at Bernstein Research reiterated a "buy" rating for the stock along with a $112 price target.Shares of the company traded about 5% higher late Tuesday, changing hands around $78. That gain, however, still leaves the stock down more than 16% from its June 27 close just before it reported disappointing fiscal fourth-quarter results — and it's down nearly 30% this year.Bernstein’s Aneesha Sherman is bullish on Nike: Her $112 target is higher than any of the 20 analysts tracked by Visible Alpha. (That list doesn't include Bernstein.) Of those 20, half have "buy" ratings for the sports apparel giant. Nike Stock 'Poised To Rebound,' Analyst Says“There is a big lag in when you start working on things like innovation or regaining distribution and when the numbers actually start to show up,” Sherman said of Nike in an interview with CNBC last month.Nike has "been hiring and investing in R&D and putting more marketing dollars behind some of their launches and rebuilding partnerships with retailers and we are in the trough where we haven’t seen any of that impacting sales yet," Sherman said. "As soon as we start to see some of that brand momentum working and their efforts paying off, the stock is poised to rebound." Read the original article on Investopedia.
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