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Nike Share Price Targets Raised Following Earnings Beat

Sam Boughedda
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.

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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.

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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. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Sam Boughedda
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.