D.A. Davidson & Co. Feels Confident In Nike Ahead Of F4Q14 Report

In a report published Thursday, D.A. Davidson & Co. analyst Andrew Burns reiterated a Neutral rating and $82.00 price target on Nike (NYSE: NKE).

In the report, D.A. Davidson & Co. noted, “Our F4Q revenue and EPS estimates are $7.350 billion and $0.76, compared to consensus of $7.338 billion and $0.75, respectively. FQ4 guidance calls for high single-digit revenue growth, 50bp-75bp gross margin expansion, and high teens SG&A growth (30%+ demand creation). Our estimate assumes 9.8% revenue growth, gross margin of 44.7% (up 75bp y/y), and 17.7% y/y SG&A growth, resulting in an operating margin of 12.3% (down 144bp y/y). We view consensus estimates and guidance as achievable.”

Nike closed on Wednesday at $76.21.