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The analysts currently have an Outperform rating on the stock, which is down over 5.74% so far in 2023.
“We are optimistic that a combination of now downbeat investor sentiment and prospects for still solid underlying trends should position shares well for potential ‘pop-higher’ near term, all the while helping to create a stronger foundation for continued gains over the next several months,” they wrote.
“Our Q4 (May) EPS forecast of $0.62 conservatively compares with a Street figure of $0.68 and is predicated upon estimated, reported total company sales growth of flat-to-+2%, consistent with guidance.”
Oppenheimer believes that recent management commentary suggests that “in FY23 (May 2023), NKE expects to experience 600bps of FX headwinds.”
“Per our math, Q4 (May) reported total company sales growth is likely to be impacted by 200-400bps of FX headwinds,” the analysts continued. “For FY24 (May 2024), we look for EPS growth of 18% to $3.76 (vs. Street $3.91E), upon reported total company sales growth of 7-9%, at the lower end of long-term guidance for high-single-digit to low-double-digit growth, on average.”
