Baird upgrades Nike after two years, sees concerns as temporary

Baird analyst Jonathan Komp upgraded Nike to Outperform from Neutral with an unchanged price target of $150. The analyst has been Neutral on the shares for over two years despite a positive fundamental view of Nike’s transformation to a direct-to-consumer digital-led organization. He upgrades the shares with the stock underperforming 13% year-to-date. Recent concerns around the supply chain and China are likely to prove temporary, Komp tells investors in a research note. He believes current share levels provide a “more compelling entry along with a favorable risk/reward” when looking over the next two years.