Nike Inc (NKE)

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Top Wall Street analysts see long-term upside in Nike Stock even amid investor uncertainty
By: CNBC | March 27, 2022

Nike

Over the last two years, the retail industry has been plagued by lockdowns, supply-side and logistical constraints, and now runaway inflationary pressures weighing on consumer behavior. However, Nike (NKE) recently beat Wall Street consensus estimates on revenue and earnings per share. The company is also shifting its wholesale business to better adapt to new consumer trends.

This year, the shoe and athletic equipment manufacturer is experiencing demand that outstrips its supply and inventory. Nike also has been expanding its partnerships in Chinese markets, as noted by Robert Drbul of Guggenheim in his recent report. (See Nike Stock Charts on TipRanks)

Drbul rated the stock a buy, and he declared a price target of $195.

The analyst elaborated that the progress in China “will lead it into a new era of marketplace transformation.” Additionally, despite the declining year-over-year revenues in that market, Drbul said that “Nike has the most innovative brand, platforms, and product line” to succeed there.

In general, retail has been looking encouragingly strong at the current juncture in time. Drbul said that Nike’s industry-leading position should provide it with enough leverage to out-invest and out-innovate its peers.

While short-term operational challenges remain, Drbul expects them to subside in the long term and for Nike to emerge from them stronger, and more valuable, than before.

Drbul ranks as No. 111 out of almost 8,000 analysts on TipRanks. He has been correct when picking stocks 68% of the time, and he has achieved an average return per rating of 27.9%.

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