UBS Reiterates Neutral Rating on Nike (NKE) on 'Balanced Upside/Downside Skew'

UBS analyst Jay Sole reiterated a Neutral rating and $48.00 price target on Nike (NYSE: NKE).

The analyst commented, "The pivotal Nike question remains “Is all the ‘bad news’ now priced in?” Despite the stock's pullback, we don’t see a good entry point. Nike’s stock price is still not cheap at ~25x our FY27 EPS estimate, in our view, and this suggests a solid rebound remains priced in. We continue to see a balanced upside/downside skew. The main upside risk is Nike returns to positive sales growth with expanding gross margin faster than expected. Yet the main downside risk is the rebound takes much longer than the market anticipates. Nike’s recent actions with its Jordan brand cause us to reiterate this view."

For an analyst ratings summary and ratings history on Nike click here. For more ratings news on Nike click here.

Shares of Nike closed at $38.10 yesterday.

You May Also Be Interested In

• Microsoft plans data center push to triple its computing power - Bloomberg
• Morgan Stanley Downgrades Novo Nordisk (NOVOB:DC) (NVO) to Underweight
• Wedbush Assumes Palo Alto Networks (PANW) at Outperform