Two Upgrades Are Pushing Shares of Nike Higher

Upgrades from Piper Jaffray and Susquehanna sent shares of sport apparel and shoe company Nike higher in Monday’s trading session.

According to Piper Jaffray analyst Erinn Murphy, Nike’s risk profile has “considerably diminished.” She believes that the North American landscape stabilizing, as well as robust margins and revenue driving brand momentum will help Nike see positive earning per share revisions.

The analyst upgraded the stock from “neutral” to “overweight” and upped her price target from $72 to $93.

Ultimately, Murphy believes that Nike can see earnings per share of more than $5.60 by the year 2023, and has cited an “extremely healthy” athletic category.

Susquehanna’s Sam Poser upgraded Nike shares from “neutral” to “positive” and boosted his price target from $78 to $93. According to Poser, the company is gaining market share from Adidas and other competitors.

Poser believes that Nike can meet its fiscal 2023 $50 billion revenue target, and that the stock is a buy.

“Based on our proprietary checks with retailers and with some of Nike’s competitors, it has become clear, after some concern on our end, that Nike is beginning to balance scale and scarcity well across the spectrum of retail partners and across merchandise categories,” wrote Poser.

CNBC’s Jim Cramer remarked on the upgrades and said, “I think that the two upgrades today were trying to get ahead of Foot Locker. Foot Locker looks like a cheap stock.”

Disclaimer: We have no position in Nike Inc. (NYSE: NKE) and have not been compensated for this article.