Guggenheim names Nike its best idea in 2022, citing metaverse play

Guggenheim names Nike its best idea in 2022, citing metaverse play

A buyer outlets on the Nike retailer on December 21, 2021 in Miami Seaside, Florida.

Joe Raedle | Getty Pictures

Nike shares rose about 1% in prolonged buying and selling on Monday after Guggenheim named the retailer its “finest concept” for 2022.

Analyst Robert Drbul mentioned in a word to purchasers that Nike’s already dominant market share ought to proceed to develop because it retains scaling on-line and innovates with new footwear and attire merchandise within the new 12 months.

Close to time period, Nike has been damage by international provide chain disruptions, he mentioned, however the firm ought to nonetheless be capable of hit the monetary targets it laid out final June.

Nike has additionally seen momentum gradual for its model in China, which was a key level of weak point on the corporate’s newest earnings report.

Drbul mentioned, nonetheless, that any concern concerning China “presents a possibility for long-term buyers as Nike continues to ship and innovate merchandise that join with native customers by selling wholesome life-style and different essential societal themes.”

Guggenheim additionally mentioned it will likely be intently watching Nike’s engagement within the metaverse in 2022. In December, the retailer introduced it purchased digital sneaker firm RTFKT for an undisclosed quantity.

Nike shares are up nearly 18% from a 12 months earlier. Its market worth is $263.8 billion.

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