Nike (NKE 0.04%) shares were up 5% at noon ET Monday, according to data from S&P Global Market Intelligence. The rise is due to investment firm Jeffries boosting its price objective for the business to $115 per share, a 46% increase over its current price.
Nike is running it back:
Nike’s stock plummeted 55% from its peak as the corporation alienated several of its product distribution partners in recent years. After seeing early success with its in-house Nike Direct and Nike Digital businesses, the firm prioritized its own sales skills above retaining connections with its wholesale partners.Â
However, when customers transitioned from flu-aided buying from home to returning to stores as conditions stabilized, Nike’s sales fell for the first time since the epidemic began. Nike has a new CEO, Elliott Hill, and Jeffries analyst Randal Konik now feels the company’s risk-reward profile is appealing. With Hill focused on repairing Nike’s distribution connections and returning to its inventive beginnings, Konik believes the company is now at a “valuation trough” of 25 times earnings. Konik believes the market is underestimating Nike’s comeback narrative, citing recent polls indicating that the brand is still strong and a rise in job ads for product roles on the company’s website.
Can you invest $1,000 in Nike currently?
Before you buy Nike stock, consider this.
- Nike did not make the Motley Fool Stock Advisor’s list of top ten stocks to invest in right now. The ten equities that made the cut might provide massive gains in the next years.
- Consider when Netflix published this list on December 17, 2004… if you invested $1,000 at the time of our suggestion, you’d have $533,073!*
- Or, when Nvidia published this list on April 15, 2005, if you had invested $1,000 at the time of our advice, you would have $798,425!*
