Goldman Sachs analysts initiated coverage of the sportswear company with a buy rating and a $172 price target on Tuesday, sending shares up 1.38% in Tuesday's premarket trading.
The company's current sourcing issues, according to Goldman analyst Kate McShane, are "transitory," and the stock's recent pullback following its third quarter earnings update represents a buying opportunity based on a "healthy industry backdrop with a company-specific, continued focus on innovation to drive growth."
Last month, Nike lowered its full-year sales forecast to a "mid-single digit" growth rate from a previous estimate of double-digit gains, citing supply chain issues that were affecting goods movement from Asia to North America.
During the summer, two Nike suppliers in Vietnam, where half of the company's shoes and a third of its clothes are made, intended to restrict production to fulfil COVID-19 regulations due to a spike in Delta infections in the region.
On September 23, Nike CFO Matthew Friend informed investors that "Several of our factory partners in Vietnam and Indonesia were required to abruptly cease operations in the first quarter," "As of today, Indonesia is now fully operational, but in Vietnam nearly all footwear factories remain closed by government mandate."