Citigroup Reiterates Buy on Nike (NYSE: NKE), Raises PT and Estimates

Citigroup reiterated its Buy rating on Nike (NYSE:NKE) and increased its price target from $75 to $80, reflecting the company's third quarter beat and better gross margin assumptions.

Analyst Kate McShane, said, "While the co. remained cautious on certain geographic markets, mgmt sounded upbeat about their overall business based on its renewed growth in apparel, momentum in NA, stronger futures growth in China & Emerging Markets, innovation driving product launches & share gains, increasing ASP's, continued strength in direct to consumer and mgts ability to better manage the supply chain and increase efficiencies."

McShane added, "While the stock is likely to be up tomorrow on the strong Q3 beat and better than expected global futures number, we would still be buyers ahead of the investor day on May 5th, which we think will focus on further growth opportunities for apparel, long term growth targets, and capital allocation. NKE remains on Citi's Top Picks Live! list."

The bank raised Nike's 2010 EPS estimate from $3.75 to $3.86, versus consensus estimates of $3.71.