The athletic apparel and globally recognized brand
A massive amount of sources are also noting that analysts and investors are looking to bet on Nike despite having a complicated 2017, as opposed to its close and local rival Under Armor which also had the same problematic 2017. Both companies have been on a lackluster performance but Nike has been slowly creeping way back to the top from its recent performance.
Buy and Positive Rating
On a recent analysts note, the OTR Global recently updated Nike’s rating to a “positive”; several brokerages and analysts have also updated the athletic company’s rate to a “buy” before its quarterly report as they believe that the recent resurgence of the company and outstanding performance just before the year ends is enough to help boost the company.
Argus recently announced that they upgraded Nike stock to a massive “buy” and has set a $75 price target for its stock; meanwhile, Robert W. Baird also announced that they have upgraded Nike to a “buy” rating and is expecting a $65.00 price on shares. Reports revealed that the company’s aggressive branding and pricing power managed to push the upbeat performance.
According to reports, the brand and the whole company has been adjusting and have been adapting to the 2017 market with an aggressive business strategy which is geared toward the evolving retailing market grounds. Nike has been reportedly focusing their energy on putting more effort on direct-to-consumer sales strategy.
Nike Against Competition
Analysts are still speculating that Nike will continue to struggle against local competition in the form of Under Armor and even fiercer international competition as Adidas continues to dominate the market with vintage-inspired designs and their aggressive celebrity partnerships this year. Furthermore, Adidas has been trampling the North America market with its Boost tech driving sales 30% higher.
One more effect that Adidas made in the North American market is with Nike’s and Under Armor’s key partners or retailers which includes; Foot Locker, Finish Line, and Dick’s Sporting Goods were all lagging in terms of performance in the recent quarters of 2017.
All-in-all, Nike managed to score a massive 20% increase this whole year; but on the bleaker side, the last quarterly report they have was flat and even trailing a massive 180 points for their gross margin which was brought by price markdowns.
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