As new coronavirus cases subside in Asia, China slowly re-opens its sport fields
Return of the Chinese to sports affected sales growth of Nike sportswear.
On Wednesday, shares of the American company grew in 8%. At least 7 brokers perceive the progress of Nike shares positively and some even increased its price target to $95. The shares are currently traded around $80, and therefore the price target appears around a fifth higher than the actual price.
Nike market value dropped in almost 30% since the beginning of the year, mostly due to fear of coronavirus pandemic. Many sports events were either postponed or cancelled, which also negatively affected economy of the company.
Yet, on Tuesday Nice announced that its e-commerce doubled in China and the situation is slowly becoming stable. “Nike announced that its revenue declined only 4% year-over-year in the quarter, which shown the brand’s ability to manage through global situation,” wrote John Kernan, analyst of American bank Cowen. Analysts believe that with the China’s growing demand, Nike will manage the expected decline in Europe and the U.S.