CFRA analysts upgraded Nike (NYSE: NKE ) shares to Hold from Sell while maintaining a 12-month price target of $88.
The analysts noted that Nike’s current valuation is slightly below the company's 10-year average forward P/E multiple of 29.4x but remains close to its three-year average prior to the pandemic.
Since August 10, Nike shares are down about 20%.
“We continue to believe the Nike brand is one of the most iconic brands around the world and deserves a premium valuation compared to many of its peers due to its strong balance sheet, large share buyback program, and consistent execution by management,” the analysts wrote in a client note.
“We expect the next 12 months to be tough for NKE in the U.S. as the low- to middle-income consumer's savings is back below pre-pandemic levels, but believe NKE can achieve our EPS estimate and now see value emerging in shares.”
Nike stock closed at $90.17 per share on Tuesday. The stock is up 0.4% in early Wednesday trade.
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