How Nike Helped Push The Dow To A New High

by MR Magazine Staff

It’s been the worst performing stock this year on the Dow Jones Industrial Average, but it led the index to new highs Monday. Shares of Nike ended up 3% Monday, helping prolong the Dow’s rally since Donald Trump’s election in early November. Shares of the sports apparel company jumped after HSBC analysts upgraded the stock from “Hold” to “Buy,” and gave it a 12-month price target of $60—a 18% upside from Monday’s open. “[W]e now see the stock trading below 20x forward price-to-earnings ratio, a level we find very compelling given our bullish stance on the fundamentals of the sporting goods industry and the quality of Nike’s management team and track record in terms of growth, cash returns and communication,” the team wrote. “We also view that during lower growth times like now, Nike has many levers to pull to extract better margins.” Read more at Fortune.