Recently,NikeThe company released its financial results for the fourth quarter and full year of fiscal year 2021. The financial report shows that the company's revenue in the fourth fiscal quarter increased by 96% year-on-year to $12.3 billion, compared with market expectations of $11.01 billion and $6.313 billion in the same period last year; Net income was $1.509 billion, compared to an expected $819 million and a loss of $790 million in the same period last year; Earnings per share were $0.93, compared to market expectations of $0.51, and a loss of $0.51 per share in the same period last year, both exceeding market expectations.
Following the release of the financial report, several investment banks raised their target prices for the company.
Baird analyst Jonathan Komp raised his price target for Nike from $150 to $192 and maintained his "Outperform" rating.The analyst pointed out that Nike's fourth-quarter results nearly doubled, reflecting the company's strong momentum in North America, Europe, the Middle East and Africa, as well as better-than-expected performance in Greater China. The analyst currently believes that Nike's stock price has the potential to rise above $250 over the next three years.
Deutsche BankAnalyst Paul Trussell raised his price target for Nike from $161 to $179 and maintained his "buy" rating.Trussell pointed out that Nike released a “strong” fourth-quarter earnings report, showing that the company’s revenue growth and profitability in China and North America both exceeded expectations, indicating that the overall market is developing healthily.
UBSAnalyst Jay Sole raised his price target for Nike from $170 to $185 and maintained his "buy" rating.The analyst stated in the report that Nike's strong fourth-quarter profit performance and the company's guidance for fiscal year 2022 "far exceeded market expectations" highlight the company's ability to achieve significant profit growth despite challenges in the Chinese market. Sole added that the benefits of Nike's transformation into a digital, direct-to-consumer (DTC) company are "only just beginning to emerge."
RBC Capital analyst Beth Reed raised her price target for Nike from $165 to $183, maintaining her "Outperform" rating.The analyst said Nike reported "strong" fourth-quarter results and raised its revenue growth forecast for fiscal year 2025 from high single digits to low double digits, driven by digital markets, women's apparel, apparel, the Jordan brand, and international sales. Reed added that it is worth noting that Nike has also increased its sales target for DTC from the current 40% to 60%.
Piper Sandler analyst Erin Murphy raised her price target for Nike from $170 to $174 and maintained her "overweight" rating.Murphy stated that he raised his earnings forecast for Nike, calling the company's fourth-quarter results "the result of a combination of multiple strategic levers."
BMO Capital analyst Simeon Siegel raised his price target for Nike from $160 to $174, maintaining his "Outperform" rating.The analyst pointed out that Nike's performance almost entirely exceeded expectations, and the company's overall profit margin also improved significantly as its EBIT margin reached its highest level in "many years". Siegel believes that the company's size provides it with a long-term competitive advantage.
Pivotal Research analyst Mitch Kummetz raised his price target for Nike from $167 to $175 while maintaining a "buy" rating.Kummetz stated that the company's fourth-quarter results far exceeded expectations. Over the past two years, the company's sales increased by 21%, with sales in North America increasing by 29%. He stated that Nike's performance "demonstrates its tremendous momentum," and its guidance for fiscal years 2022 and 2025 "demonstrates its great confidence."
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