Bank of America upgrades Nike (NKE) shares to a Buy rating from a Neutral rating. Bank of America Securities Analyst Lorraine Hutchinson — who was behind the stock call — wrote that "estimates finally look achievable" and that the brand’s valuation is "finally looking compelling" in her note to investors.
Hutchinson sits down with Market Domination to discuss Nike’s revised growth narrative as it makes some of its more sought-after Jordan shoes accessible and prepares for the tidal wave of exposure expected from the 2024 Summer Olympic Games.
"What we expect is that newness and innovation to hit. We then anticipate a lot of marketing and demand creation spending in their first quarter ahead of the Olympics," Hutchinson states. "When we look back, Olympic quarters have grown about 500 basis points above a regular 1Q, because of all this effort, all this product. I think it’s a really exciting time for Nike, and I think they will try to capitalize on that moment by really bring the innovation."
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