Nike share price outlook: Analysts think the stock could run 18% from here

The Nike share price has not been immune to the broad-based weakness across equity markets, with the company’s stock down 43% YTD. 

Despite that, as we discuss below – the stock is currently undervalued – if you put much weight in Wall Street’s opinions. 

Nike Overview

Founded in 1964 – Nike has come to be known for its innovative designs, backing some of the world’s best athletes, and impressive revenue growth & scale over the last two decades.  

That revenue growth in part likely explains the persistent bullishness from Wall Street analysts. Nike’s annual revenue has run from US$13.7 billion in FY05 all the way up to US$46.7 billion in FY22.

More broadly and despite the global headwinds we are seeing – checkout what happens to stocks during recessions – the sportswear company has continued to power forward in calendar 2022. Here’s a quick take of Nike’s most recent earnings for the first quarter of FY23:

  • Revenue increased 4% to US$12.7 billion
  • Digital sales rose 16%
  • Gross margins declined 220 basis points to 44.3%
  • Earnings per share fell 20% to $0.93
  • Inventories rose 44% in the period, hitting US$9.7 billion
Fun fact: Did you know that the brand value of Nike stood at US$33.1 billion in 2022, according to Statista.

Nike Share Price Outlook 

Analysts currently have a Buy rating on Nike, on average. Of the sell side analysts covering the stock, Nike has 17 Buy ratings, 6 Overweight ratings, and 12 hold ratings. 

Not only that, but the average analyst price target on Nike implies that Wall Street expects the stock to potentially rise 18.2% from where it closed at on November 7, 2022.  

Some key investment banks see even more upside than that. New research from UBS recently set a US$141.00 price target on Nike, while JPMorgan set their price target to US$120.00. 

The lowest analyst price target on Nike is US$83.00. 

How to buy and invest in US shares

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To start investing in US shares like Nike with Syfe, follow these simple steps:

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