Last year was key for the metaverse and its potential opportunities. What was once a loose and abstract concept was made into reality, as a number of major technology, retail, and crypto companies fully embraced the metaverse. Now, with the new year upon us, investment firm Guggenheim has selected its “best idea” for 2022, powered by potential metaverse opportunities.
Guggenheim analyst Robert Drbul stated in a note that he expects Nike’s (NYSE:NKE) large market share to continue to grow as the company makes further developments in e-commerce, apparel and footwear. Drbul has a price target of $195 for NKE stock. Additionally, Drbul expects that Nike should still be able to make meet its guidance forecasts, even in the face of supply chain disruptions.
On another note, Drbul believes that Nike is “is rapidly embarking on the next era of its company history.” That era could potentially be the metaverse, and Drbul is closely watching Nike for any further metaverse developments. Last month, Nike announced that it had acquired virtual sneaker company RTFKT. The company also teamed up with Roblox (NYSE:RBLX) last year to create a virtual world called Nikeland. The virtual world will create an environment in which users can compete and play in various mini-games. Users will also be able to dress up their avatars in the latest Nike apparel.
According to TipRanks, Robert Drbul has a 67% success rate and an average return of 12.1% over a one-year period. Drbul ranks highly as an analyst, placing 320 out of 7,761 total analysts that TipRanks tracks.
It’s always beneficial to take multiple viewpoints into account. With that said, let’s take a look at how other analysts on Wall Street view NKE stock.
NKE Stock Price Predictions
- Morgan Stanley has a price target of $202 on NKE stock. Last month, the firm lowered the price target from $206 to $202. However, the price target still represents upside of 23% from current prices. “Nike is in the early innings of transition from a wholesaler to a DTC brand,” explained analyst Kimberly Greenberger. “Nike also stands to benefit from advancing global consumer activewear demand (due to the WFH-induced preference for comfort-oriented apparel/footwear and increased focus on health & wellness).”
- Barclays has a price target of $195. Analyst Adrienne Yih was impressed by Nike’s recent earnings and increase in gross margins. Going forward, she believes that Nike is well-positioned.
- Goldman Sachs has a price target of $172. Analyst Kate McShane believes that the supply chain issues affecting Nike are “transitory,” and that Nike still operates in a “healthy industry backdrop.” Additionally, McShane notes that NKE stock should be a good long-term investment as long as it continues to innovate.
- Finally, Nike has an average price target of $187.11 among 20 firms with coverage of the stock. This implies upside of 13% from current prices.
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
