Last week, Nike created a whirlwind of controversy when they decided to sign Colin Kaepernick and make him the face of their 30th anniversary ‘Just Do It’ campaign.
Many people were up in arms, some even burning and cutting up their Nike gear on social media due to the company’s decision to roll with Kaepernick.
The outcry led to Nike losing more than $4 billion in the company’s market value.
Well, this is no longer an issue.
On Tuesday, Nike recovered the stock loses it experienced immediately after announcing it’s decision to feature Kaepernick as shares rose roughly half a percent to close at $82.63. Nike’s stock had closed at $82.20 the day before it revealed Kaepernick’s role in the company’s campaign and shares fell below $80 last week.
For those scoring at home, Nike stock has now erased all the losses associated with the effect of the Colin Kaepernick ad. pic.twitter.com/aoCWhQ77RL
— Darren Rovell (@darrenrovell) September 11, 2018
Analyst believe Nike’s stocks to soon climb into the $85 to $95 range.
Analysts are bullish on Nike’s growth potential and expect the stock to soon climb into the $85-$95 range, according to MarketWatch.com:
“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,” wrote analysts led by Camilo Lyon.
“In aggregate, we see newly introduced platforms coupled with forthcoming innovations sparking the next multi-year run for Nike. These elements, underpinned by Nike’s transformation to an experientially-driven company, combine to form catalysts to sustaining mid-teens earnings-per-share growth for the next three years, an outlook that is increasingly visible and reflective of [fiscal] 2021 earnings power approaching $4.00,” analysts said.