Why Nike Stock Sprinted Higher Today
Nike (NYSE: NKE) shares crossed the finish line into positive territory on Tuesday, inching up to close nearly 1% higher. The storied athletic footwear and apparel maker got a lift from a pair of prominent banks issuing research updates on the stock.
That morning, Citigroup analyst Paul Lejuez raised his price target on Nike significantly, to $115 per share from his preceding $93. Although he's maintaining his neutral recommendation on the shares, he's placing them on his company's "30-day positive catalyst watch."
Said (potential) catalyst is Nike's soon-to-be-published second quarter of fiscal 2023 results. He believes these will top analyst consensus estimates thanks to stronger-than-expected sales, and wider margins. Lejuez deduced this based on amped-up promotional activity by the company and its retail partners, in addition to Nike's effectiveness in reducing excess inventory.
Source Fool.com
