Will a $ 350 Nike shoe make you a better basketball player?
The New Year evolves as an animal in the athletic world, when Nike Inc. plans to launch a basketball auction platform with an eye for $ 350 price.
Nike
NKE, + 7.21%
already enjoys the success of the Vaporfly 4% running shoe with its price of $ 250. And scientific studies have shown that Vaporfly helps some runners run faster, making it a must-have for performance-oriented marathons and recreational runners.
"This reputation has made its way into everyday practitioners, making 4% the most sought-after shoes on the race day, and it has created a halo effect for many of our Nike footwear, especially Peg 35, which drives double-digest growth in the category of the [the second quarter] Nike CEO Mark Parker said in the company's earnings call last year, according to a FactSet transcription.
Parker announced the new basketball platform and the new call point pricing.
Read: Under Armor, some analysts are asking whether it is possible to see prospects
"We have a smart shoe designed for perfect fit, and it's a big step in promoting and connecting our digital transformation to product," he said.
Nike's partnership with the National Basketball Association is growing, says Parker, with LeBron James's move to the Los Angeles Lakers, and also provides an opportunity for the company.
The company's iconic Jordan brand hasreturned to growth. The Jordan line, along with women's line and acceleration in China, became highlights from the last quarter.
See: Nike stockpile as earnings blow on Jordan, women and China strengthens the issue bullish analyst calls
"Nike seems to expand its thinking on the long-term global addressable market with an eye to expanding core active leather / clothing categories ", writes Baird analysts in a note.
Baird awards Nike shares surpass, with a goal of $ 87 share price.
"With a strong pipeline of new products and building digital competencies, we expect more to come and continue to see upward capacity for revenue and gross margin prospects in [the 2020 fiscal year]" wrote Stifel analysts. "We have confidence in Nike to undertake macro-related challenges in [fiscal 2020] and gain share and continue to see Nike shares as a solid core business for investors with large-scale growth."
Staple interest rates Nike shares buy, with a $ 96 price target.
"Improvements in the scarce model, speed of production, and digitally driven consumer commitments are still in their early stages and should continue for the foreseeable future," wrote Susquehanna Financial Group analysts led by Sam Poser. "Because of the improvements mentioned, Nike is out in the competition, including Adidas
ADDYY, + 0.79%
and Under Armor
UA, + 6.85%
. "
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Susquehanna rates Nike shares positive, with a price target of $ 1[ads1]00.
Not all analysts are bullish , though. UBS maintained its neutral stock class and $ 78 stock price target, saying that Nike's digital move, including those over the supply chain, will require "heavy investment."
Nike shares have achieved nearly 12% in 2018, while the Dow Jones Industrial Average
DJIA, + 4.98%
who counts Nike's stock among its 30 members, has lost 11.3% for the period.
