On Thursday, Nike shares posted the strongest rise in the Dow Jones index, benefiting from a change in recommendation by BofA, which this morning upgraded to buy on the American sporting goods manufacturer.
The intermediary believes that, after two years of downward revisions to consensus forecasts, which resulted in a 35% reduction in market expectations, earnings estimates for the group have finally returned to reasonable levels.
"We think the valuation is attractive, with the stock trading at its lowest relative P/E in ten years", he adds.
The analyst cites as potential catalysts the company's forthcoming investor day, the first in seven years, to be held next autumn, as well as the new developments that are on the horizon with the holding of the Olympic Games in Paris.
In this context, Bank of America has raised its opinion on the stock from 'neutral' to 'buy', with a price target raised from $110 to $113.
Shortly before 10:00 a.m. (New York time), the stock was up by more than 3% against a generally stable Dow Jones index, bringing the year-to-date decline to 18%.
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Nike, Inc. specializes in the design, manufacturing and marketing of sports shoes, clothing, and equipment. The group's products are sold primarily under the names Nike, Jordan, Converse Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell. Net sales break down by family of products as follows:
- footwear (68.9%);
- clothing (27.2%);
- sports equipment (3.4%): golf equipment (golf clubs, balls, gloves, etc.), bags, balls, etc.;
- other (0.5%).
At the end of May 2023, products were being marketed through a network of 1,032 stores worldwide, through independent distributors, and via the Internet.
Net sales are distributed geographically as follows: North America (44.3%), Europe/Middle East/Africa (27.5%), China (14.9%), Asia/Pacific and Latin America (13.2%) and other (0.1%).
NIKE, INC. 
