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By Sam Boughedda
Investing.com -- Nike (NYSE:NKE) climbed Thursday, after analysts at JPMorgan and UBS provided positive commentary on the sportswear giant.
Nike was up about 4.7% higher in recent trading.
JPMorgan analyst Matthew Boss reiterated an overweight rating and $164 price target on Nike shares following discussions with Nike's management and the company's quarterly filing.
The analyst said Nike's material underlying improvement in China was a key takeaway. Boss explained in his note to investors that management sees China "on pace" to deliver "sequential improvement" in the fourth quarter, despite the impact of covid related restrictions on local consumers since the company provided guidance on March 21.
In addition, UBS analyst Jay Sole reiterated a buy after an investor meeting in New York with Matt Friend, EVP and CFO at Nike, and Paul Trussell, VP, Investor Relations&Strategic Finance.
Sole was upbeat following the discussions, explaining that he believes "North America demand remains very strong, particularly in digital channels, and Nike's inventory levels are lean."
Commenting on Nike's business in China, the analyst said that while lockdowns have likely impacted sales and supply chain transportation, they believe the issues "are contemplated in Nike's guidance.”
“The company's investments in product innovation, supply chain speed, and digital are unlocking what is likely a multiyear period of above average growth,” concluded Sole.