In This Article:
Nike (NKE) shares got a boost after Deutsche Bank lifted its price target for the stock, citing the recent CEO change and upcoming earnings. Market Domination Hosts Josh Lipton and Julie Hyman take a closer look.
For more expert insight and the latest market action, click here to watch this full episode of Market Domination.
This post was written by Naomi Buchanan.
All right, let's get to some calls of the day sponsored by Tasty Trade. Deutsche Bank raising its price target on Nike from 92 to 95. The note highlighting the company's CEO transition, but that's not all, Julie. Deutsche Bank, uh, they like this name. It's a buy. They say Nike Nike is poised for a turnaround. They tell their clients we think uh, Q1 results will be broadly in line. Q2 guidance will likely bracket the street. As a result, they say we anticipate Nike will reiterate its full-year guidance.
Yeah, but they're looking for some specifics on the call from Nike too, uh, when it reports on, um, Tuesday after the close of trading here. First of all, they're going to be looking for the new product pipeline and key milestones, they say. Secondly, the wholesale order book outlook. Uh, commentary on China. Thirdly, the margin outlook because of the promotional environment and rising freight costs and inventory positioning. And of course, remember tying back to the discussion we were just having, this is going to come on the same day that there might be a port strike being announced. So perhaps when we speak to all of the inventory and pricing, etc., freight for costs, maybe there'll be some questions about that as well.
They also do talk about change in the C-suite, of course, for Elliot Hill taking over as a CEO, says they think he's a good fit for the role. They told clients, talked about his experience, the company, uh, seasoned veteran, thinks he's going to focus on product innovation, marketing, and rebuilding those wholesale partnerships.
Yes.
