Recently,NikeAnnounced fiscal fourth quarter and full year financial results for fiscal 2021. According to the financial report, the company's revenue in the fourth fiscal quarter increased by 96% year-on-year to USD 12.3 billion, with the market expectation of USD 11.01 billion and USD 6.313 billion in the same period last year; Net income was $1.509 billion, compared with an expected $819 million, compared with a loss of $790 million in the same period last year; Earnings of $0.93 per share were on track to earnings of $0.51 per share and losses of $0.51 per share in the same period last year, both beating market expectations.
Several investment banks raised their price targets on the company after the earnings release.
Baird analyst Jonathan Komp raised his price target on Nike to $192 from $150, maintaining an "outperform" rating.The analyst noted that Nike's fourth-quarter results nearly doubled, reflecting the company's strong momentum in the North America, Europe, Middle East and Africa region and outperforming expectations in Greater China. The analyst currently believes that the upside potential of Nike's stock price in the next three years may reach more than $250.
Deutsche BankAnalyst Paul Trussell raised his price target on Nike to $179 from $161, maintaining a "buy" rating.Trussell noted that Nike released a "strong" fourth-quarter report showing better-than-expected revenue growth and profitability in both the China and North American markets, indicating that the overall market is developing healthily.
UBSAnalyst Jay Sole raised his price target on Nike to $185 from $170, maintaining a "buy" rating.Nike's outstanding fourth-quarter profit performance and the company's guidance for fiscal 2022 is "well above market expectations," highlighting the company's ability to deliver significant earnings growth despite challenges in the Chinese market, the analyst said in the report. The benefits of Nike's transformation into a digital, direct-to-consumer (DTC) company "are just starting to show," Sole added.
RBC Capital analyst Beth Reed raised his price target on Nike to $183 from $165, maintaining an "outperform" rating.The analyst said Nike reported "strong" fourth-quarter results and raised its revenue growth forecast for fiscal 2025 from high single digits to low double digits, driven by digital markets, women's products, apparel business, Jordan brand, and international sales. It's worth noting that Nike has also increased its DTC sales target to 60% from the current 40%, Reed added.
Piper Sandler analyst Erin Murphy raised his price target on Nike to $174 from $170, maintaining an "Overweight" rating.Murphy said it raised its performance expectations for Nike and called the company's fourth-quarter results "the result of a combination of strategic levers."
BMO Capital analyst Simeon Siegel raised his price target on Nike to $174 from $160, maintaining an "outperform" rating.The analyst pointed out that Nike's performance almost exceeded expectations, and the company's overall profit margin also improved significantly as its EBIT profit margin reached the highest level in "many years". Siegel believes the company's size gives it a long-term competitive advantage.
Pivotal Research analyst Mitch Kummetz raised his price target on Nike to $175 from $167, maintaining a "buy" rating.Kummetz said the company's fourth-quarter results far exceeded expectations. On a two-year basis, the company's sales are up 21%, including a 29% increase in North America. Nike's performance "shows its tremendous momentum," while its guidance for fiscal 2022 and 2025 "shows its tremendous confidence," he said.
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