Nike's Stock Rallies To Within Reach Of a Record High After Analyst Upgrade

Nike Inc.'s stock rallied 1.3% in midday trade Monday, after the athletic apparel and shoe seller was upgraded by RW Baird, which cited a rising preference for active lifestyles against a backdrop of robust consumer spending. Analyst Jonathan Komp raised his rating to outperform from neutral, and lifted his stock price target to $115--14% above current levels--from $102. Nike's strong operating fundamentals sets the company up to capitalize on "a healthy consumer spending backdrop combined with secular shifts in consumer purchase behavior," which helps justify the "valuation expansion and outperformance year to date," Komp wrote in a note to clients. Nike's stock, a component of the Dow Jones Industrial Average , was now within 0.8% of its March 20 record closing high of $101.98. It has rallied 5.2% year to date while the Dow has gained 0.9%. Komp also upgraded the shares of Wolverine World Wide Inc. to outperform from neutral, but downgraded Genesco Inc. to neutral from outperform.