Will Q4 Results Help Nike Run Higher?
Fiona Cincotta June 24, 2020 7:35 AM
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
Chart thoughts
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.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.