Nike Shares Could Double in 2-3 Years – Stifel

By Senad Karaahmetovic

Stifel analysts see an attractive entry point in Nike (NYSE:) shares and believe the stock could eventually double in 2-3 years.

With Nike shares trading sharply lower in 2022, including a 14% drop in September, the analysts noted that main investor concerns remain excess inventory levels and FX headwinds caused by the strong . However, this type of market environment also offers a “tactical opportunity for long-term investors to accumulate shares in a category-defining quality growth company.”

“Demand remains strong validating brand relevance and headwinds to margin should reverse in FY23+ as pressures from inventory clearance and freight costs subside,” they told clients in a note.

The analysts remind investors that Nike valuations are at the lowest level in two and a half years. As such, they sees the capacity for Nike stock to “double in two years based on reasonable growth assumptions and a 5-yr. median valuation multiple.”

In the meantime, they reiterated the $110 per share price target on Buy-rated Nike shares.

Nike share price closed at $90.17 yesterday.

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