Is Nike A Tech Company? Oppenheimer Says A Transformation Is Underway

Few investors consider Nike Inc (NYSE: NKE) a tech stock, but Oppenheimer said in an upgrade note that a "technological evolution is underway."

The Analyst

Oppenheimer's Brian Nagel upgraded Nike from Perform to Outperform with a $90 price target.

The Thesis

Nike continues to embrace technological evolution as a means to "enhance most all aspects" of its business model, CNBC quoted Nagel as saying in the upgrade note. (See his track record here.)

The analyst anticipates improvements in areas such as consumer connections, product innovation and manufacturing.  

Investors are not fully appreciating the changes being made that can favorably impact Nike's near- and long-term performance, the analyst said. 

Oppenheimer forecast a mid-single digit growth rate for the global sportswear market, and said China, Asia Pacific and Latin American will outperform more mature markets. 

Price Action

Nike shares were down 1.6 percent at $75.26 at the time of publication Thursday. 

Related Links:

Cowen: Nike's Valuation Looks High Amid Unprecedented North American Competition

Analyst: Nike's Capacity To Surprise Investors On The Upside 'Not As Substantial Anymore'