By Kim Khan
Investing.com – component Nike (NYSE:) saw strong gains in midday trading after getting a double-dose of optimism from analysts.
Nike shares rose 11%, bringing shares close to a 52-week high and adding 27 to the blue-chip index.
J.P. Morgan added the stock to its Analyst Focus List, noting that its price/earnings to growth (PEG) ration was at 1.5x, lower than the average of 1.8x.
“We see the recent pullback as a multi-year buying opportunity,” retail analyst Matthew Boss said in a note.
And UBS boosted the stock to buy from neutral.
“We upgrade Nike to Buy because we now think the market will pay a much higher P/E for NKE as it realizes how Nike’s business model changes will make the company worth much more long-term,” UBS analyst Jay Sole wrote.
Of the 33 analysts covering the stock 25 have a top rating on Nike, with average price target around $108.
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