Morgan Stanley: Nike’s Target Price Rise to $185

Morgan Stanley analyst Kimberly Greenberger predicts that Nike may also be affected by the epidemic and decline in market share in the next fiscal year, but the company management The gradual implementation of the DTC strategy will bring long-term steady revenue growth, profit margin expansion, and continuous growth in earnings per share for the company. Therefore, Nike’s target price is raised to $185.

In terms of valuation, Greenberger believes that given that Nike is transitioning from a traditional wholesale model to a DTC brand model, its transaction price premium is reasonable relative to the historical premium level.