Research Alert: CFRA Raises Opinion On Shares Of Nike, Inc. To Buy From Hold

01:40 AM EDT, 03/21/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target price by $5 to $85, based on 26.2x our FY 26 (May) EPS estimate and below the company's three-year average forward P/E multiple of 29.3x, reflecting our view that Nike's ( NKE ) multiple will continue to compress as investors catch on to the lack of growth prospects. We lower our FY 25 and FY 26 EPS estimates by $0.45 to $2.50 and $0.25 to $3.25, respectively. NKE posts normalized FQ3 EPS of $0.54 vs. $0.98, which is $0.25 above the consensus estimates on revenues of $11.27B vs. $12.43B and $236M above estimates. Nike Direct sales declined 12% Y/Y and Wholesale declined 7%. FQ3 gross margin fell 330 bps Y/Y to 41.5% as Nike ( NKE ) used elevated promotional activity to off-load inventory. Nike ( NKE ) repurchased $500M in shares during the quarter, with just over $6B remaining on the buyback program. We raise our opinion on shares of Nike ( NKE ) and believe analyst expectations for future earnings are too low. We expect the company to earn over $3.00 in FY 26, well above consensus estimates of $2.33.

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