Baird Upgrades Nike After Two Years, Sees Concerns As Temporary

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Baird analyst Jonathan Komp upgraded Nike (NKE) 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.