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Nike (NYSE:NKE) was one of the top gainers in the Dow Jones Industrial Average on Monday after the company held a high-profile product launch in Paris, the site of the Summer Olympics in just a few months.
The event covered the launch by Nike (NKE) of its Blueprint Pack offering, consisting of 13 new products across track shoes, basketball shoes, soccer shoes, and lifestyle shoes. The main attraction was reported to be the 41st version of Nike’s (NKE) Pegasus shoes, which is considered the centerpiece of the running business. The new Pegasus Premium silhouette was called an “upgraded and elevated take on one of the brand’s most recognized and celebrated running shoes” in one review. The Pegasus 41 will be available to consumers in June through Nike’s (NKE) online store and retail partners.
Product innovation has been a major topic on Wall Street, with analysts covering Nike (NKE) largely expecting consumers to be impressed. JPMorgan reiterated an Overweight rating on Nike (NKE) and price target of $164 after meeting with the company’s management team. Analyst Matthew Boss pointed to Nike’s (NKE) material improvement in China as a reason for investors to be enthusiastic about the stock. Meanwhile, Morgan Stanley noted that retailers have highlighted improving sequential demand trends for the athletic apparel sector as a whole. For Nike (NKE), analyst Alex Stratton said there are early signs of the company’s strategy shift taking hold.
On Seeking Alpha, analyst Jeffrey Adams reasoned Nike’s (NKE) premium trading multiple to industry peers is warranted due to its brand strength, pricing power, and customer loyalty. Notably, Nike’s (NKE) brand scored very high with teenagers in the latest Piper Sandler survey of the age demographic.
Shares of Nike (NKE) were up 1.51% at 1:39 p.m.
