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Nike Inc

On Tuesday, Nike Inc. (NYSE:NKE) shares edged higher 1.2% after receiving a buy rating from Goldman Sachs. The firm initiated NKE coverage, saying the stock is undervalued whilst issuing a price target of $172.00 per share.

Analyst Kate McShane and the Goldman team cited a healthy industry backdrop and the company’s continued innovation as a significant catalyst for growth. Moreover, Nike’s huge cash balances are seen supporting re-investment whilst also returning capital to shareholders.

Nike shares are up 8.54% this year after pulling back more than 12% since the 12th of August. As a result, McShane sees more share price upside, thus presenting an opportunity for investors to buy.

Time to bet on NKE’s growth prospects?

From an investment perspective, Nike shares trade at a trailing 12-month P/E of 39.93 and a forward P/E of 31.60. Therefore, value investors may opt to monitor the stock before buying. 

However, analysts expect Nike’s earnings per share to grow by more than 123% this year before rising by a further 33% next year. As a result, growth investors could find the stock as an exciting addition to their portfolios.

Source – TradingView

Is a channel breakout imminent?

Technically, Nike shares seem to be trading within a descending channel formation in the intraday chart. However, the stock recently bounced off the trendline support to surge towards the 100-day moving average.

Nonetheless, with shares still far from reaching overbought conditions, investors could target extended gains at about $158.27 or higher at $165.52, while $146.53 and $138.93 are solid support levels.

Nike’s growth is exciting

In summary, although Nike shares seem to be trading under significant downward pressure, the stock

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