Apparel and shoe-making giant Nike was crowned a coveted “Best Idea” and “Top Pick” by Guggenheim on Thursday amid expectations the iconic retail brand is going to swoosh it up at the 2020 Summer Olympic games - and also just do it when it announces its quarterly results on Thursday.
In a note to clients, Guggenheim analyst Robert Drbul named Nike his top stock pick in retail and also among his best ideas given the company’s “robust” innovation pipeline ahead of the upcoming summer Olympics. He also lifted his one-year price target to $115 from $110.
Shares of Nike were up 0.16% at $99.81 in trading on Wednesday.
The crowning comes ahead of Nike’s fiscal second-quarter earnings, which will be released after the closing bell on Thursday. Though import tariffs likely had the biggest impact on results, analysts are confident the numbers will beat Wall Street forecasts.
Analysts polled by FactSet are currently expecting Nike to post per-share earnings of 58 cents on sales of $10.1 billion. A year ago, Nike posted per-share earnings of 52 cents on sales of $9.4 billion.
To be sure, for Drbul, it’s more about what’s to come for Nike than what just happened.
“Nike will exit fiscal 2020 with strong momentum into key global sporting moments in fiscal 2021 (after) the UEFA Euro 2020 and the 2020 Tokyo Olympics,” Drbul wrote.
And he’s not the only analyst looking at Nike’s 2020 layup and feeling bullish.
Analysts at Goldman Sachs last week raised their rating on the stock to a buy and also placed the stock on its Conviction List, while assigning a $112 price target – all on expectations of a bumper holiday shopping season and, like Drbul, a strong Olympics-driven 2020.