Nike

• Revenue Growth: Nike reported $51.4 billion in revenue for FY2024, showing a minimal increase of 1% YoY. In Q4 2024, revenues were $12.6 billion, a 2% decline YoY, reflecting challenges in key markets like North America.

• Net Income: Nike posted an EPS of $0.99 for Q4 2024, slightly above expectations, due to improved gross margins of 44.7%, thanks to strategic pricing and lower logistics costs.

• Free Cash Flow: Nike continues to generate significant cash flow, although the company is facing headwinds from inventory management issues and lower digital sales.

💰 Valuation Analysis

• P/E Ratio: Nike’s forward P/E ratio is 26.28x, reflecting a valuation premium typical of strong consumer brands, though it remains under pressure due to recent performance.

• Price Target: Analysts have set a consensus price target of $101.85, with a potential 23.13% upside. The range of targets spans from $71 to $136, showing uncertainty about Nike's ability to navigate current challenges.

• Market Cap: Approximately $130 billion, positioning Nike as a leader in the global sportswear market, despite recent struggles.

📈 Growth Metrics

• 2025 EPS Growth Forecast: Analysts expect Nike’s EPS to grow by 15.07% in 2025, driven by potential recovery in key markets and continued innovation in product lines.

• Price Target: The broad range of price targets suggests mixed sentiment, reflecting both Nike's strong brand equity and the challenges it faces in maintaining growth.

🔮 Forecast

Final Summary

• ⚠️ Hold with Caution: Nike’s strong brand and market position provide long-term potential, but short-term challenges suggest caution.

• 📉 Competitive and Market Pressures: Recent financial results highlight difficulties in North America and digital sales, which could impact performance.

• 🔎 Mixed Analyst Sentiment: While analysts see upside, the wide range of price targets indicates uncertainty about Nike's ability to overcome current challenges.