Nike Stock Runs Higher on Analyst Bull Note

The China-adjacent equity has taken a hit in the past few weeks

Deputy Editor
Feb 3, 2020 at 9:23 AM
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Blue chip and shoe manufacturer Nike Inc (NYSE:NKE) has been no stranger to the coronavirus-induced headwinds stocks have faced in the past few weeks, coming in to today with a nearly 5% year-to-date loss. However, J.P. Morgan Securities just added the stock to its focus list and lifted its price target to $111 from $110, causing the stock to pop 2.8% to trade at $98.51 in electronic trading this morning. The analyst said NKE's recent drop could be a buying opportunity for investors, and added that its upcoming "2020 Forum" will be a boon for the stock, predicting several Tokyo 2020 Olympics product launches along with a strong pipeline for the upcoming year. 

While the equity is still trading just south of its Jan. 27 bear gap, it is testing its footing back atop the 60-day moving average -- a trendline the stock breached for the first time in months last Friday. Plus, year-over-year, Nike is still up over 18%. 

Most analysts echo today's bullish bias, with 16 in coverage calling the security a "buy" or better. However, there are still seven who consider NKE a "hold" or worse. Meanwhile, the equity's consensus 12-month price target of $110.91 is a 15% premium to Friday's close. 

The options pits have been incredibly optimistic too. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) 3.06 calls have been bought for ever put in the past 10 days. This ratio sits in the 97th percentile of its annual range, suggesting a much healthier-than-usual appetite for long calls of late. 

 

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