Morgan Stanley analyst Jay Sole said that Nike addressed almost all of the key questions the market had going in to its analyst day and “impressively demonstrated” it has the products, supply chain innovation, distribution strategy, marketing and brand strength needed to win.
While he contends the key debate is no longer “if” Nike can recover, but “when” it can recover, he also views the debate as “somewhat academic, as he thinks the stock price “will be much higher two and three years from now.” Sole adds that Nike’s comments about its retail transformation plans were bullish for Foot Locker (FL) and bearish for the company’s “non-differentiated” U.S. wholesale partners. The analyst keeps an Overweight rating and $62 price target on Nike, which rose about 3% yesterday to close near $55 per share.
