Analyst Sees Attractive Entry Point for Nike Stock

The majority of analysts were bullish coming into today

Deputy Editor
Oct 12, 2021 at 9:34 AM
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The shares of Nike Inc (NYSE:NKE) are up 1.3% at $152.29 ahead of the opening bell, after Goldman Sachs initiated coverage with a "buy" rating, and a $172 price target. The analyst cited the blue-chip footwear and apparel maker's "powerful brand legacy," excellent growth initiatives, and continued innovation, while noting that a recent post-earnings pullback serves as an intriguing entrance point.

Goldman Sachs is joining an already bullish brokerage bunch, with 19 out of the 22 in coverage recommending a "buy" or better rating. Coming into today, the 12-month consensus price target of $180.69 is an 18.7% premium to current levels.   

Nike stock is seeing attractively-priced premiums as well. The security's Schaeffer's Volatility Index (SVI) of 23% stands higher than just 14% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment. What's more, NKE's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 74 out of 100, meaning the shares have tended to exceed option traders' volatility expectations during the past year.

A mid-June bull gap saw Nike stock surge on the charts, eventually attaining an Aug. 6, record high of $174.38. Since then, however, the 20-day moving average has guided NKE lower, though the stock appears to have bounced off a floor at the $145 level. Year-over-year, the equity is up 16.1%. 

 

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