Skip to content

Nike Share Price Targets Raised Following Earnings Beat

Sam Boughedda trader
Updated 21 Dec 2022

Nike (NYSE: NKE) shares rose slightly in Tuesday's regular session, but the stock jumped in extended trading and premarket Wednesday after it reported its fiscal second quarter results.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


The share price rise results from the sportswear giant topping earnings and revenue estimates. Earnings per share came in at $0.85, beating expectations of $0.65, while revenue of $13.3 billion topped expectations of $12.54 billion. In addition, revenue rose 17% compared to the previous year.

Top Broker Recommendation

YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY

Nike's brand digital sales increased by 25%, while wholesale revenue grew by 19%. However, gross margin decreased by 300 basis points to 42.9%.

Furthermore, Nike said inventories grew 43% to $9.3 billion, driven by a rise in units from lapping prior year supply chain disruption, as well as higher input costs.

“Consumer demand for NIKE's portfolio of brands continues to drive strong business momentum in a dynamic environment. We remain focused on what we can control, and we are on track to deliver on our operational and financial goals — setting the foundation for sustainable, profitable growth,” commented Nike Executive Vice President and Chief Financial Officer, Matthew Friend.

Nike shares are currently up over 12% premarket Wednesday.

Following the report, analysts across the board raised their share price targets on the stock. UBS lifted its price target on Nike to $146 from $141, Deutsche Bank raised Nike's price target to $133 from $126, Morgan Stanley increased the Nike price target to $138 from $127, Piper Sandler lifted their price target on Nike to $105 from $95, and Goldman Sachs raised its price target on the stock to $133 from $120 per share.

According to TipRanks, out of 26 analysts, 17 have a Buy rating on Nike, with eight at Hold and One at Sell. The average price target of $118.50 represents a potential 14.8% upside from Tuesday's close.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.Â