Sam Boughedda

Investing.com —  Nike (NYSE): The stock index rose Thursday after an analysts at JPMorgan and UBS provided positive commentary on the sportswear giant. 

Nike’s stock was about 4.7% higher during recent trading.  

After speaking with Nike executives and reviewing the quarterly filing, Matthew Boss of JPMorgan reiterated his overweight rating for Nike shares and a $164 price target. 

An analyst stated that Nike’s material and underlying improvements in China were a major takeaway. Boss stated in a note to investors, that China management believes China will deliver “sequent improvement” during the fourth quarter. This is despite the effect of restrictions on local consumers related to covid since Boss provided guidance March 21.

In addition, UBS analyst Jay Sole reiterated a buy after an investor meeting in New York with Matt Friend, EVP and CFO at Nike, and Paul Trussell, VP, Investor Relations & Strategic Finance.

Sole seemed positive after the talks, explaining that he believed “North America’s demand remains strong, especially in digital channels and Nike’s inventory levels remain lean.”

Commenting on Nike’s business in China, the analyst said that while lockdowns have likely impacted sales and supply chain transportation, they believe the issues “are contemplated in Nike’s guidance.”

“The company’s investments in product innovation, supply chain speed, and digital are unlocking what is likely a multiyear period of above average growth,” concluded Sole.