Nike´s momentum during times of turbulence: how will the athletic giant shape the future of retail

• Autor(a) principal: Moura, Madalena Tarita Andrade de
• Data de Publicação: 2021
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/142451
• topic: Valuation; Finance; Athletic footwear; Digital advantage; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

The aim of this report is to determine NIKE Inc’s target share price as of 58 December 2021 and issue a buy/sell/hold recommendation 59based on the market price on that date, using the DCF60 valuation method and returning a share price of $169,65, 61which implies a HOLD recommendation due to an upside 62 of 2,45%. The firm's valuation is based on a 63comprehensive approach that involves a detailed 64examination of the future trends shaping the Sporting 65Goods Industry, followed by an assessment of projected 66macroeconomic dynamics to determine how the company 67will navigate these in a post-endemic scenario. The 68COVID-19 outbreak is expected to contribute for 69extending the gap between Nike and its peers, 70consolidating the company’s leading position. With the 71retail industry under pressure, the winners will be the ones 72anticipating the consumer shifts towards digital and 73sustainability and market opportunities such as the one 74represented by the China region, while operating under an 75agile supply chain. Nike is facing its largest market 76opportunity, since the company’s rapid pace of innovation 77is very hard to replicate, especially in critical times. Nike 78will continue to fuel growth through deep consumer 79connections, enabled by a consolidated direct-to-consumer 80business model.