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Piper Jaffray Earnings Previews: Nike Inc (NKE), Finish Line Line (FINL)

With the ink dry on a record-breaking 2016 NBA finals, Piper Jaffray analyst Erinn Murphy weighs in on athletic retailer giants Nike Inc (NYSE:NKE) and Finish Line Inc (NASDAQ:FINL). Let’s take a closer look on her thoughts and expectations for both companies.

Nike Inc

Prior to the release of Nike’s Q4 earnings report due June 28, Piper Jaffray analyst Erinn Murphy weighs in. The analyst remains bullish on the stock, reiterating an Overweight rating for NKE noting that Nike’s 14% year-to-date pull back is a potentially appealing entry point for investors.

Despite the conceivable attractiveness of the aforementioned pull back, Murphy concedes that “shares are now trading 21.8x FY17 and buyside sentiment remains decidedly negative.” The analyst notes that an array of investor concerns ranging from an apparent slow in the North American market to “signature Basketball softness and domestic ASP’s,” plague investor sentimentality, however she is not too concerned.

Murphy believes that these investor concerns are “over-blown,” noting that “while inventory in the channel domestically had been elevated, we believe it is in better shape currently.” Murphy also notes that her “proprietary Teen Survey suggests that the brand remains strong – particularly in footwear and among females,” a view that she does not believe is reflected in current valuations of the...