Recently,NikeAnnounced the fourth fiscal quarter and full-year financial report of fiscal year 2021. The financial report shows that the company's revenue in the fourth fiscal quarter increased by 96% year-on-year to US $12.3 billion, compared with market expectations of US $11.01 billion and US $6.313 billion in the same period last year; Net profit was US $1.509 billion, compared with expectations of US $819 million, compared with a loss of US $790 million in the same period last year; Earnings per share were US $0.93, market expectations for earnings per share of US $0.51, and losses per share of US $0.51 in the same period last year, both exceeding market expectations.
After the financial report was announced, a number of investment banks raised their target prices for the company.
Baird analyst Jonathan Komp raised Nike's target price from $150 to $192, maintaining an "outperform" rating.The analyst noted that Nike's fourth-quarter results almost doubled, reflecting the company's strong momentum in North America, Europe, the Middle East and Africa, and better-than-expected performance 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 Nike's target price from $161 to $179 and maintained a "buy" rating.Trussell pointed out that Nike released a "strong" fourth-quarter performance report, which showed that the company's revenue growth and profitability in China and North America were better than expected, indicating that the overall market is developing healthily.
UBSAnalyst Jay Sole raised Nike's target price from $170 to $185 and maintained a "buy" rating.The analyst said in the report that Nike's fourth-quarter profit performance was outstanding and the company's guidance for fiscal 2022 was "well above market expectations," highlighting the company's ability to achieve substantial earnings growth despite the challenges facing in the Chinese market. The benefits of Nike's transformation into a digital, direct-to-consumer (DTC) company are "just beginning to show," Sole adds.
RBC Capital analyst Beth Reed raised Nike's target price from $165 to $183, maintaining an "outperform" rating.The analyst said Nike reported "strong" fourth-quarter results and raised its fiscal 2025 revenue growth forecast from high single digits to low double digits, driven by digital markets, women's apparel products, apparel business, Jordan brand, and international sales. Notably, Nike has also increased its sales target for DTC to 60% from the current 40%, Reed added.
Piper Sandler analyst Erin Murphy raised Nike's target price from $170 to $174 and maintained 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 multiple strategic levers."
BMO Capital analyst Simeon Siegel raised Nike's target price from $160 to $174, maintaining an "outperform" rating.The analyst pointed out that Nike's performance almost all exceeded expectations, and the company's overall profit margin has also improved significantly as its EBIT profit margin has reached its highest level in "years". Siegel believes the company's size provides it with a long-term competitive advantage.
Pivotal Research analyst Mitch Kummetz raised Nike's target price from $167 to $175 and maintained a "buy" rating.Kummetz said the company's fourth-quarter results far beat expectations. On the basis of the past two years, the company's sales increased by 21%, including a 29% increase in North America. He said Nike's results "show its tremendous momentum," while its guidance for fiscal 2022 and fiscal 2025 "shows its tremendous confidence."