Why Are These Analysts Bullish on Nike Inc (NYSE:NKE)

Nike (NYSE:NKE) shares are back in the limelight after several bullish outlooks from analysts. The stock which used to trade at around $67 in 2015 is currently trading at $51. Nike (NYSE:NKE) is having a tough time amid rising competition and declining demand. Instinet’s analyst Simeon Siegel recently said in a report that the investors are overreacting to the futures orders of Nike , which are declining to new lows. The analyst said that Nike (NYSE:NKE) has strong direct channel sales, and the overall industry is going through a recovery.

Nike (NYSE:NKE) is investing heavily to ramp up its ecommerce sales. The company has a solid free cash flow of $6 billion, versus $3.5 billion debt. Nike (NYSE:NKE)’s gross margins have dropped by a whopping 47.5% since the start of 2016, but this was mainly due to foreign currency headwinds. Jefferies recently reiterated a “Buy” rating on Nike (NYSE:NKE) with a price target of $75.

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