The Nike logo can be seen on the Nike store on February 22, 2021 in New York City.
John Smith | Corbis News | Getty Images
Nike shares jumped more than 13% on Friday morning, set to open at a record high, after the sneaker maker annual sales forecasts over $ 50 billion as its North American business rebounds from the lows of the pandemic.
And in Greater China, sales appear to be improving, with Nike management saying the company is confident in its ability to win back the trust of customers there, amid threats to boycott Western brands over their comments. expressing concern about the alleged forced labor in Xinjiang.
Globally, Nike is seeing shoppers splurging with new edgy sneakers and tracksuits to wear as more people start to socialize again. The company’s Jordan brand was particularly brilliant.
Nike, which has a market cap of over $ 211 billion, saw its stock hit a record high of $ 147.95 on December 21.
Following Nike’s optimistic fourth-quarter fiscal year results Thursday afternoon, Cowen & Co. analyst John Kernan raised his price target to $ 181 from $ 145.
Kernan said he sees a way for Nike’s market cap to someday exceed $ 300 billion.
“Management confidence is at an inflexion and the fourth quarter results indicate the digital acceleration of the financial model,” he said in a note to clients.
According to Cristina Fernández, analyst at the Telsey Advisory Group, Nike is benefiting from its closer relationships with its customers through its membership program, higher full-price selling, greater data usage and a more wholesale model. smart with strong partners like Walk-in locker.
Telsey raised his price target on Nike shares to $ 180 from $ 160.
“The strong momentum of the Nike brand globally more than offsets the pressure in China and supply chain constraints,” Fernandez said in a note to customers.
At least 12 brokerages have already raised their price targets for Nike shares, following the company’s fourth quarter tax release.
According to FactSet, the median target price for analysts who cover the company is now $ 176.90.