Current Price – $75.3
Target Price – $93.4
Growth Potential – 24.0%🔥
Dividend Yield – 2.0%💵
Investment Time – 1 Year
👟Nike is an American international company, one of the world leaders in the production of sportswear and footwear. The recent decline in the company's shares after the publication of the report created attractive conditions for purchase. The fair price of Nike shares is $93.4, the upside is 24%. Dividend yield is 2%.
Investment Theses
🔼Attractive valuation.
Nike presented a good report for the 4Q2024 financial year (which ended on May 31, 2024). Revenue fell by 2% y/y to $12.61 billion, while profit grew by 45.6% y/y to $1.5 billion ($0.99 per share). However, investors were frightened by the company's forecast, which assumes a 10% reduction in sales in the next quarter and by 4-6% by the end of the 2025 fiscal year. Nike shares fell by 20% against this background, which created attractive conditions for purchase. The company is now valued at only 24 expected annual profits, while the average estimate for 5 years was over 35 profits. Also, despite a number of negative revisions to the target price of shares, analysts see growth potential from current levels.
🔼Olympics as a growth driver.
Nike actively invested in the Paris Olympics. It is expected that it can give a new impetus to the growth of sales of the company's sports sneakers. In addition, Nike is conducting a cost reduction program, which will keep profits high.
🔽Risks.
The unfavorable economic situation in China and the United States may lead to a further decline in sales, which will negatively affect the company's securities.
How to invest
Open a free brokerage account with Unibank Invest and start trading directly from your phone. Our mobile app grants you access to the world's largest exchanges and popular investment instruments like stocks, bonds, and ETFs.
To open a brokerage account, fill in an online form on unibankinvest.am or call +374 43 004 382.
#Investments #Finance #UnibankInvest #MarketTrends #InvestingTips #bonds #stocks
‼️ Disclaimer
The information is only indicative, is not exhaustive and is provided solely for discussion purposes. The information should not be regarded as a public offer, request or invitation to purchase or sell any securities, financial instruments or services.
No guarantees in direct or indirect form, including those stipulated by law, are provided in connection with the specified information and materials. The information presented above cannot be considered as a recommendation for investing funds, as well as guarantees or promises of future profitability of investments.
The risk of negative consequences as a result of the use of the above recommendations, opinions and statements is fully borne by the addressee of the information.
Target Price – $93.4
Growth Potential – 24.0%🔥
Dividend Yield – 2.0%💵
Investment Time – 1 Year
👟Nike is an American international company, one of the world leaders in the production of sportswear and footwear. The recent decline in the company's shares after the publication of the report created attractive conditions for purchase. The fair price of Nike shares is $93.4, the upside is 24%. Dividend yield is 2%.
Investment Theses
🔼Attractive valuation.
Nike presented a good report for the 4Q2024 financial year (which ended on May 31, 2024). Revenue fell by 2% y/y to $12.61 billion, while profit grew by 45.6% y/y to $1.5 billion ($0.99 per share). However, investors were frightened by the company's forecast, which assumes a 10% reduction in sales in the next quarter and by 4-6% by the end of the 2025 fiscal year. Nike shares fell by 20% against this background, which created attractive conditions for purchase. The company is now valued at only 24 expected annual profits, while the average estimate for 5 years was over 35 profits. Also, despite a number of negative revisions to the target price of shares, analysts see growth potential from current levels.
🔼Olympics as a growth driver.
Nike actively invested in the Paris Olympics. It is expected that it can give a new impetus to the growth of sales of the company's sports sneakers. In addition, Nike is conducting a cost reduction program, which will keep profits high.
🔽Risks.
The unfavorable economic situation in China and the United States may lead to a further decline in sales, which will negatively affect the company's securities.
How to invest
Open a free brokerage account with Unibank Invest and start trading directly from your phone. Our mobile app grants you access to the world's largest exchanges and popular investment instruments like stocks, bonds, and ETFs.
To open a brokerage account, fill in an online form on unibankinvest.am or call +374 43 004 382.
#Investments #Finance #UnibankInvest #MarketTrends #InvestingTips #bonds #stocks
‼️ Disclaimer
The information is only indicative, is not exhaustive and is provided solely for discussion purposes. The information should not be regarded as a public offer, request or invitation to purchase or sell any securities, financial instruments or services.
No guarantees in direct or indirect form, including those stipulated by law, are provided in connection with the specified information and materials. The information presented above cannot be considered as a recommendation for investing funds, as well as guarantees or promises of future profitability of investments.
The risk of negative consequences as a result of the use of the above recommendations, opinions and statements is fully borne by the addressee of the information.
