Wells Fargo Reiterates a Hold Rating on Nike

By George MacDonald

In a report issued on October 4, Tom Nikic from Wells Fargo reiterated a Hold rating on Nike (NYSE: NKE). The company’s shares closed yesterday at $52.12, close to its 52-week low of $51.48.

According to TipRanks.com, Nikic is a 2-star analyst with an average return of 1.3% and a 75.0% success rate. Nikic covers the Services sector, focusing on stocks such as Children’s Place, Tiffany & Co., and Boot Barn.

Currently, the analyst consensus on Nike is Moderate Buy and the average price target is $66, representing a 26.6% upside.

In a report issued on September 20, Merrill Lynch also reiterated a Hold rating on the stock with a $55 price target.

Nike`s market cap is currently $87.67B and has a P/E ratio of 23.48. The company has a book value ratio of 7.1517.

Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. Most recently, in July 2012, Alan Graf, a a Director at NKE bought 8,000 shares for a total of $245,120.

NIKE, Inc. engages in the design, development, marketing, and sale of sports and lifestyle footwear, apparel, and equipment, accessories and services. Its athletic footwear products are designed primarily for specific athletic use, although a large percentage of the products are worn for casual or leisure purposes. It focuses on NIKE Brand and Brand Jordan product offerings in seven key categories: running, basketball, football, men’s training, women’s training, NIKE sportswear, and action sports. It also markets product designed for kids, as well as for other athletic and recreational uses such as baseball, cricket, golf, lacrosse, outdoor activities, football, tennis, volleyball, walking, and wrestling. The company sells a line of performance equipment under the NIKE Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, golf clubs, and other equipment designed for sports activities. It also sells small amounts of various plastic products to other manufacturers through its wholly-owned subsidiary, NIKE IHM, Inc. Its reportable operating segments for the NIKE Brand are: North America, Western Europe, Central & Eastern Europe, Greater China, Japan, and Emerging Markets. The company wholly-owned subsidiaries include Converse Inc., which designs, markets and distributes casual footwear, apparel and accessories and Hurley International LLC, which designs, markets and distributes action sports and youth lifestyle footwear, apparel and accessories. The company was founded by William Jay Bowerman and Philip H. Knight in 1964 and is headquartered in Beaverton, OR.