Tuesday, FBR Capital Markets initiated coverage of Nike Inc. (NKE) stock with a Market Perform rating and a price target of $67.
Analyst Eric Tracy initiated coverage of Nike with a Market Perform rating based on his belief that the company's near- and long-term outlooks are sound. Although not immune to the risk of continuing consumer weakness, the company should fare better than most, which the analyst believes is largely reflected in premium valuation.
The analyst thinks top-line trends will reaccelerate to positive territory in third quarter of 2010, future orders are up 4%, against easy comparisons, fueled by market share gains and a more streamlined, efficient business model. Although domestic markets should remain challenging, Nike is entrenched in multiple foreign markets with ample room to grow in emerging regions.
The analyst believes that with a foundation built on product innovation, supported by favorable cash generation, Nike will continue to mitigate the impact of constrained consumer spending through market share gains as retailers gravitate to strong brands, and consumers to compelling product, continued growth in the international market, and tight inventory and expense controls.
Currently, NKE is down $0.36 or 0.55% and trading at $64.55.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.