Will Q4 Results Help Nike Run Higher?
Fiona Cincotta June 24, 2020 9:35 PM
Several analysts have raised their price target on Nike ahead of its Q4 results on Thursday 25th June
When: Thursday 25th June after market close
However, Nike has been growing its online presence, which it has focused on even more in lockdown and which could go some way to keeping sales elevated. A combination of increasing recognition that an active healthy lifestyle is more meaningful than ever, combined with Nike’s focus on its digital offering could mean that after some short term pain Nike is well positioned to benefit from its rapidly growing e-commerce business.
Analyst expect revenue to decline -28.1% yoy compared to the same period last year to $7.32 billion, with EPS at $0.08. Full year consensus is expected at $39 billion and EPS $2.18.
Nike has rallied this week ahead of its earning release as analysts at multiple firms raised their price target on the stock.
UBS maintained its buy rating but increased the target price to $122 from $114
JP Morgan maintained its overweight rating whilst raising the target price to $104, up from $96
The share price tumbled close to 40% in late March, along with the broader market as coronavirus set in. Nike shares have performed a spectacular rally and are almost flat year to date, surging 6% this week so far, settling on Tuesday at $101.92.
The share price trades comfortably over its 50, 100 and 200 sma on a bullish chart.
Immediate resistance can be seen at 104.70, the high reached on 3rd & 5th June, prior to the all time high of $105.62 reached in late January.
Immediate support can be seen at $96, a level which offered support on Friday and Monday, prior to the 200 day sma in the region of 92.50. A breakthrough this level would suggest that the bears are back in control. However, for now, as Nike navigates north of this level more buying could be on the cards.
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.