Goldman Sachs Downgrades Nike, Inc To Buy

Goldman Sachs Downgrades Nike, Inc To Buy

The company’s stock was downgraded by an analyst at Goldman Sachs but sees potential growth in the EPS.

Nike Stock, on Wednesday was being traded at a share price of $130.04 which indicated a decline of 1.97%. A number of analysts have shared their views on the stock of the sportswear company. One of the analysts at Goldman Sachs, Drucker Mann has suggested a rating on the stock of the company. From her list of conviction-buy, Ms. Mann has downgraded the Nike’s stock to Buy, according to a note that was issued to the investors of the company. The Goldman Sachs’s analysts still feels that the stock price is expected to go higher in the long run but for the short and near term, she does not see much of a difference.

The multinational apparel and footwear manufacturer has received a target share price of $148 from an initial estimate of $150 by the analysts. This target price indicates an increase of 11.02% from the prevailing share price of the company. Ms. Drucker Mann stated that they see a lot of room for growth in the earnings per share but the valuation seems capped. Nike, Inc. has been quite popular with Goldman Sachs mainly because of its solid and steady revenues and growing profits. Majority of Nike’s profit driver come from the international market, as most of the athletic products of the company are doing fairly well in the international market in comparison to the United States.

Nike, Inc. does not leave any innovation gap or any product advantages it might come across. The company has increased its investment in its supply chain process which is ultimately lead to improved innovations and further product opportunities.

The company tried to attract and lure more investors by disclosing that it is planning on a stock split and increased dividend due to which the stock of the athletic goods manufacturer witnessed its all-time high at a share price of $134.44. Two months earlier, the financial services firm Goldman Sachs maintained its rating on the stock of the company to Strong Buy with a target price of $150. This target price indicated a premium of as much as 13.23% from the company’s stock’s current price.

In the past three months’ time, the company stock has gone up by 23% with a share price of $135.30. 22 analysts have given a target price estimate for the stock which is $134.41. On the higher side it could go up to $150 and on the lower it could reach $105. Zacks has ranked the company at 2, with a short time rating of buy.

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