Nike Inc (NYSE: NKE) is in for a long-term run of sales growth that will make it more valuable over the next few years, UBS said Monday.
The Nike Analyst
UBS analyst Jay Sole upgraded Nike from Neutral to Buy and raised the price target from $103 to $136.
The Nike Thesis
Sole said he thinks the market will pay more for for Nike on anticipation of long-term success.
Sole said Nike's investments in new products, supply chain, and eCommerce push his sales projections up for the next several years.
"Nike is on the verge of a new, extended period of elevated sales growth rates," Sole wrote in a note. "The market doesn't fully appreciate how Nike's investments are working in concert to drive industry growth, share gain, and channel mix shift benefits."
Sole said the competition can't stop Nike's long-term prospects, and that he doesn't think "athleisure" fades.
Nike's Price Action
Nike's stock was up 4% Monday morning at $100.14 per share.
Photo courtesy of Nike.