By Sam Boughedda
Investing.com — Nike Inc (NYSE:NKE) shares have inched higher after Wells Fargo upgraded the stock to overweight from equal weight, maintaining a price target of $175.
The Wells Fargo analyst who upgraded the stock, Kate Fitzsimons, said the recent pullback in Nike shares — to around the $146 level — has provided "a rare buying opportunity." In addition, Fitzsimons stated Nike is the "best-in-class global athletic name."
The analyst cited Nike's improving supply chain picture and more significant marketing investments while also explaining that the company is well-positioned to retain its number one market share position in China.
"Based on our industry checks in China, we see the brand as better equipped than most to manage the volatility, given its strong consumer connections, strategic partnerships, use of Express Lane, and greater use of marketing," stated the analyst.
Furthermore, Fitzsimons spoke on the firm's confidence in Nike's China trajectory and the favorable risk/reward for the stock providing it with the potential for accelerating trends.
Nike shares are up 0.47% in afternoon trading.