Ahead of earnings due out after the close today, shares of Nike (NKE) are in the process of completing a bullish inverted head and shoulders pattern, according to The Fly’s technical analyst. The pattern would be triggered with a daily close above approximately $65 per share, the analyst noted. Upside potential for the pattern would be to the $74 to $75 presuming the pattern completes, The Fly’s technical analyst said.
FUNDAMENTAL VIEWS: Yesterday, JP Morgan analyst Matthew Boss added Nike to his firm’s Analyst Focus List. The analyst raised his price target for Nike shares to $72 from $67.50 and kept an Overweight rating on the name. His recent channel checks indicated continued top-line strength in North America with “rational” inventory levels and markdown activity. Late last week Brean Capital also had positive commentary on Nike shares, saying it expects the footwear giant to report solid Q3 results in the face of seasonal headwinds. The firm reiterated its Buy rating and $74 price target on Nike shares, citing high future expectations, Q4 demand creation ramp, multiple growth levers, structural drivers, and supply chain benefits. According to Fact Set, Nike has 33 analysts covering it with the average recommendation a Buy and an average target price of $72.60
PRICE ACTION. Ahead of this afternoon’s earnings report, Nike share are near flat at $64.69.
