Nike Inc.’s after-market results Thursday triggered a surge in its stock price today with shares in the midday session gaining 4.2 percent to $109.63 on trading volume three times its average.
Meanwhile, analysts say the stock’s value is exactly where it should be. Corinna Freedman, BB&T Capital Markets analyst, has a “hold” rating on shares of Nike. In a research note today, Freedman said “while we continue to view Nike as a dominant athletic brand and we remain positive on its pricing power, potential for future innovation and digital prowess, we continue to view the stock as fairly valued.”
In a separate report from Telsey Advisory Group, analyst Kelly Chen rates the stock as a “market perform.” However, in a research note released after the company’s earnings call, Chen said “given the stronger earnings power, we are raising our price target by $6 to $115…[and] we continue to view Nike as a core holding.”
In a conference call to investors last night, Mark Parker, president and chief executive officer of Nike, said the company continues to connect to consumers in meaningful ways while also pushing the envelope on the innovation front.
“Earlier this quarter, for example, Nike Women’s launched the Instagram Shop — a new tool that allows users to click a photo and be taken directly to Nike.com product pages,” Parker said. “And just last week we announced that we are one of the first partners to offer curated product collections through Twitter.”
Parker told investors that there’s more “exciting opportunities to come,” but did not offer specific details.