Morgan Stanley Looks Past China Headwinds for Nike

Cowen and Company, meanwhile, lowered it price target on concerns over China's dwindling demand

Deputy Editor
Jun 16, 2021 at 10:25 AM
facebook twitter linkedin

Several analysts are chiming in on Nike Inc (NYSE:NKE) this morning. Cowen and Company slashed its price target to $145 from $155, while Morgan Stanley lifted its price target to $185 from $172. Cowen cited weakening demand in China, and while Morgan Stanley also noted short-term headwinds from this dwindling demand, it said its long-term revenue, margin expansion, and earnings per share (EPS) growth story still look good. 

The equity remains flat amid all the analyst chatter, last seen up 0.2% at $130.25. The stock has been chopping lower on the charts since late January, when it hit an all-time high of $147.95. While the 200-day moving average briefly served as support on the charts, the equity breached this trendline earlier in the month, pressured lower by the 10-day moving average. In fact, the equity has settled lower during six of its last seven sessions, though it still sports a year-over-year lead of 31%. 

Analysts are generally optimistic on NKE. Of the 20 in coverage, 18 call it a "buy" or better. Plus, the 12-month consensus price target of $164.04 is a 26% premium to current levels. 

Lastly, the stock could see a short-term bounce soon, per its Relative Strength Index (RSI), which sits at 38. This indicates that the security is just on the cusp of being "oversold." 

Begin the New Year With Schaeffer's 7 FREE 2022 Stock Picks!



Special Offers from Schaeffer's Trading Partners