Nike shares rose about 1% in prolonged buying and selling on Monday after Guggenheim named the retailer its “best idea” for 2022.
Analyst Robert Drbul mentioned in a observe to purchasers that Nike’s already dominant market share ought to proceed to develop as it retains scaling on-line and innovates with new footwear and attire merchandise within the new 12 months.
Near time period, Nike has been damage by international provide chain disruptions, he mentioned, however the firm ought to nonetheless be capable to hit the financial targets it laid out last June.
Nike has additionally seen momentum gradual for its model in China, which was a key point of weakness on the company’s latest earnings report.
Drbul mentioned, nevertheless, that any concern relating to China “presents a possibility for long-term traders as Nike continues to ship and innovate merchandise that join with native customers by selling wholesome life-style and different vital societal themes.”
Guggenheim additionally mentioned it might be intently watching Nike’s engagement within the metaverse in 2022. In December, the retailer announced it bought virtual sneaker company RTFKT for an undisclosed quantity.
Nike shares are up virtually 18% from a 12 months earlier. Its market worth is $263.eight billion.
