Shares of Dow Jones industrial average member Nike (NKE) jumped after Morgan Stanley upgraded the stock to overweight from equal-weight, citing the potential for its new shoes and other products.
X "We think the window to buy Nike at the bottom of a cycle is closing," Morgan Stanley analyst Jay Sole wrote in a late Wednesday research note, according to CNBC. "Nike EPS and North America sales growth rates are likely troughing. We believe new Nike products like Air VaporMax, fashion shifts, and Nike's improving-more-rapidly-than-expected speed-to-market capabilities reverse headwinds experienced over the last 18 months."
Shares rose 2.3% to 59.10 on the stock market today, right on a 59.10 buy point of a flat base after climbing to 59.59 intraday. The stock in late June surged following its fiscal Q4 earnings report and its deal with Amazon.com (AMZN). Nike agreed to sell some products directly on Amazon.
Sole raised his price target on Nike to 68 from 56.
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