Athletic apparel and equipment manufacturer Nike (NYSE:NKE) saw its shares pop over 5% higher on Tuesday, albeit on no corporate-specific news. Instead, it appears that much of the upside catalyst stems from analysts’ reiterating their bullish assessments on Nike stock. Fundamentally, the brand may also be basking in the glow of a successful showpiece at the Paris Olympics.
Recently, two analysts — Bernstein SocGen Group and Bank of America Securities — reiterated the equivalent of “buy” ratings. The latter maintained its rating at the end of last month, while the former reaffirmed its assessment earlier today while also keeping the price target steady at $112.
Specifically, Bernstein analysts highlighted excitement over Nike’s new product releases, especially those under the Jordan and Dunk franchises. According to Investing, both lines have witnessed five consecutive weeks of rising search interest.
Analysts do note that brand-specific catalysts might not immediately move Nike stock. So, what’s actually fueling the lift in NKE? Aside from the attention that market experts bring — especially for a security sitting near 52-week lows — speculation surrounding lower interest rates could be contributing to the sentiment bump.
As Benzinga explained, Nike’s products are sold worldwide. Therefore, a weaker dollar would make them more competitive.
Paris Olympics May Offer a Post-Event Tailwind for Nike Stock
Another factor to keep in mind is the recently concluded Paris Olympics. Fundamentally, the Nike brand saw a rise in consumer interest and sales. Data from Similarweb revealed that this boost stemmed from the international athletic competition. Prior to the event, Nike released a range of new products, including the Jordan 4 Retro SE shoes.
Of course, the market often moves on anticipation of major news rather than their conclusion, hence the adage, “buy the rumor, sell the news.” However, NKE stock may see a post-event lift thanks to its upcoming fiscal first quarter of 2025 earnings report. Scheduled for late September, the earnings disclosure represents an opportunity for management to frame the discussion positively.
One potential news item that investors may be eager to hear about is the impact the Paris Olympics may have had on Nike. If the implications of the aforementioned online analytics hold true, NKE stock could potentially rise higher.
It’s also worth noting that according to TipRanks, analysts with hold ratings outnumber those with buy ratings, 16 to 14. The Q1 disclosure would also be an opportunity for the leadership team to sway expert opinion, which could also help Nike stock.
On the date of publication, Josh Enomoto 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
