Nike "long term buy," target price raised

Thursday, March 25, 2004 5:09:03 AM ET
Hilliard Lyons

NEW YORK, March 25 (New Ratings) - Analyst Jeffrey S Thomison of
Hilliard Lyons reiterates his "long term buy" rating on Nike (NKE),
while raising his estimates for the company. The target price has been
raised from $82 to $90.

Shares of Nike, a leading global provider of athletic footwear and
sports accessories, are currently trading at $76.30.

According to Hilliard Lyons\x{2019} research note published yesterday,
the company reported robust Q304 results. The company\x{2019}s EPS
increased to $0.74 during the quarter from the $0.47 reported in Q303,
the analyst says. Nike's diversified product portfolio, marketing
efficiency and strong operational execution boosted the
company\x{2019}s results in the quarter, the analyst
elaborates. Moreover, improved industry fundamentals were in favor of
the company, the analyst adds.

According to Hilliard Lyons, Nike's near-term earnings outlook is
robust. The company's strained relationship with its largest retailer,
Foot Locker, has improved significantly, the analyst says. However,
Nike\x{2019}s SG&A expenses are likely to increase in Q4 due to the
company's international marketing initiatives, Hilliard Lyons
says. The analyst expects the company's share price to appreciate in
the near term.

The EPS estimates for 2004 and 2005 are $3.45 and $3.90,
respectively. The P/E estimates for 2004 and 2005 are 22.1x and 19.6x,
respectively.

Hilliard Lyons reiterates its "long term buy" rating on Nike.