Nike’s ad featuring Colin Kaepernick shows that the company communicates with its core consumers in a “provocative way,” said Camilo Lyon, a Canaccord Genuity analyst.
The ad was a “subtle but significant sign of Nike’s strength and confidence in its position in the marketplace,” Lyon said.
The company nearly lost its crown as king of the sneaker market last year because its popular Jordan shoes were too easy to get and so not as elusive or cool.
Lyon raised his price target and rating on Nike.
Watch Nike trade in real-time here.
Nike is successfully staging a turnaround, and its recent ad featuring former NFL player Colin Kaepernick is a subtle sign of its strength, according to Canaccord Genuity.
“After two years of a soft product cycle that led to increased inventory levels, higher discounting, margin compression, and market share declines, Nike has regained its footing and is solidly marching back to top form,” Camilo Lyon, an analyst at Canaccord Genuity, said in a note sent out to clients on Tuesday.
Last year, Nike nearly lost its crown as king of the sneaker market because the company overproduced its high-scale shoes, making its popular Jordan shoes too easy to get and so …read more
Source:: Businessinsider – Finance