Modest gains for Nike after Street digests FQ4

|About: Nike Inc. (NKE)|By:, SA News Editor

"Management left little doubt that momentum is continuing into the new fiscal year," writes Deutsche's David Weiner, reiterating a Buy on Nike (NKE +1.2%) following its FQ4 beat. He expects product innovation to allow the shoe giant to raise prices.

Likewise, Morgan Stanley's Jay Sole declares Nike "remains our top idea." He brushes off concerns about heavy spending, arguing it'll drive future top-line growth.

JPMorgan's Matthew Ross calls Nike's strong performance in North America, Europe, and China "a regional hat trick," while adding Chinese futures growth (+6% Y/Y) was the highest since FY12. Nike stated on its CC (transcript), the company asserted it's on track towards achieving its goal of "sustainable" double-digit Chinese growth.

Credit Suisse's Christian Buss (Neutral) is a little more cautious. Buss has cut his FY15 EPS forecast by $0.07 to $3.36, and thinks Nike's inventory growth (+13% Y/Y in FQ4, the highest rate in 2 years) bears monitoring.

Prior coverage