February 27, 2024

The Nike logo can be seen in the Nike store in New York City on February 22, 2021.

John Smith | Corbis News | Getty Images

Nike shares rose more than 13% on Friday morning, hitting a record high after the sneaker maker forecast full-year sales of over $ 50 billion as its North American business rebounded from pandemic lows.

And in Greater China, sales appear to be improving. Nike management said the company is confident of regaining customer confidence there as Western brands are being boycotted over concerns over alleged forced labor in Xinjiang.

Worldwide, Nike sees shoppers opting for new sneakers and fashionable tracksuits as more and more people make new contacts. The company’s Jordan brand was a particular ray of hope.

Nike, which has a market cap of more than $ 211 billion, hit an all-time high of $ 147.95 on December 21.

After Nike’s optimistic fourth quarter results on Thursday afternoon, Cowen & Co. analyst John Kernan raised his target price from $ 145 to $ 181. Kernan said he saw a way for Nike’s market cap to surpass $ 300 billion one day.

“Management confidence marks a turning point and the fourth quarter results show the digitally driven acceleration of the financial model,” he said in a statement to clients.

Telsey Advisory Group analyst Cristina Fernández said Nike is benefiting from deeper customer loyalty through its membership program, higher full-price sales, greater data usage and a smarter wholesale model with strong partners like Foot Locker.

Telsey has raised its price target on Nike shares from $ 160 to $ 180.

“The Nike brand’s strong global momentum more than offsets the pressure in China and supply chain restrictions,” Fernandez said in a statement to customers.

At least 12 brokers have already raised their price targets on Nike shares after the company’s fourth quarter release.

The average target price of analysts covering the company is now $ 176.90, according to FactSet.