The company expects this trend to continue until at least the end of 2019. They are so confident that they’ve raised their forecast. Earlier this year, they predicted sales growth in the middle or high single digits. Now, they are pointing to high single digits. That means they expect sales to grow even further by 8-9% in 2019.
Analysts who work for Credit Suisse attribute the company’s turnaround to improved distribution, leaner inventory, and higher innovation.
Investor Confidence
Nike was the highest gainer for Dow Jones Industrial Average. The price for shares early on Friday was just below $80. That figure adds $13 billion to the Nike’s market value, bringing it to $123 billion.
Matthew McClintock is an analyst for Barclays. He said that he boosted his price target from $80 to $85. He advised investors that there won’t be a better time to buy than now. Nike is back on track riding a wave of success.
Susquehanna is so confident in the company that they raised their target price by $14. The median “buy” target is currently $81. That’s an increase of $6 over last month’s median of $75.
