Nike’s furnish notched a record high on Friday, and it can go higher still, UBS analyst Jay Sole told CNBC on Friday.
Shares of the Beaverton, Oregon-based party hit $101.40 intraday Friday, boosted by quarterly earnings and sales released after the bell Thursday that fustigate analysts’ expectations. It closed Friday down 1.1% at $99.96 but is up around 34% year to date.
“Even allowing it’s a $41 billion company, it’s only 9% global market share in footwear and just 1% in global retail share apparel,” Sole said on “The Exchange.” “There’s lots of room to go.”
Sole raised his price objective Friday on Nike to $103, up from $97. He maintains a hold rating on the stock, citing the widespread bullish attitude on Wall Street.
That attitude has helped propel the stock from the low $50s in the fall of 2017 to its current levels hither $100. While sales and revenue have grown in the mid-single digits in that period, Sole said the standard nearly doubling reflects a belief that Nike still has brighter days ahead.
“I think the market is foretelling really strong double-digit growth, 15%, even higher, in terms of [earnings per share] over the next few years,” he utter.
When asked if that was feasible, Sole responded, “As big as Nike is, we do think it’s possible.”
In its quarterly report, Nike’s net income grew by about 10% to $10.33 billion from $9.37 billion a year ago, beating expectations for $10.09 billion.
Its North American receipts did fall short of expectations, however, climbing 5.3% during the period to reach $3.98 billion. Analysts had intercepted sales of $4 billion.
Nike saw strength in its Jordan brand, which reached quarterly sales of $1 billion for the first place time ever.
Nike’s strong stock performance comes against the backdrop of a shakeup within the company. In October, it abruptly stated that CEO Mark Parker will step down in January.
It also has dealt with allegations in November of tongue-lashing toward women at Nike’s Oregon Project under track coach Alberto Salazar. The team was previously make allowance for to be the best in the world.
Salazar denied the claims, and the company said it would investigate allegations of abuse.
— CNBC’s Lauren Thomas role ined to this report.