Nike price target raised by $12 at Telsey Advisory, here’s why

Telsey Advisory analyst Cristina Fernandez raised the firm’s price target on Nike to $140 from $128 and keeps an Outperform rating on the shares. Looking ahead to Nike’s upcoming Q2 results, the firm notes the company faces tough year-over-year comparisons as last year’s Q2 2023 benefitted from improved inventory availability, the analyst tells investors. Gross margins, however, should be a “bright spot” for the company as it benefits from lower supply chain costs and annualizes the higher promotions it began last year, the firm adds. In addition to the Q2 results, Telsey will be on the lookout for evidence that 2024 could be a year of both revenue growth and operating margin expansion.