Should you buy Nike shares after multiple analyst upgrades?

Nike Inc. (NYSE:NKE) reported robust fiscal fourth-quarter results on Thursday after the market closed, beating revenue and earnings expectations. 

Several analysts upgraded the stock and raised their price target on the share price. The stock spiked 13.57% to create a price gap.

Fiscal fourth-quarter results highlights

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Nike reported GAAP earnings per share of $0.93, beating analyst expectations by $0.42. The company’s top line of $12.34 billion also outperformed expectations by a whopping $1.32 billion.

Several analysts, including Evercore, UBS, and Bank of America, either upgraded the stock or raised their target price for the next 12 months. They primarily cited high earnings growth expectations as the driving force behind their upbeat outlook.

Technical overview

Nokia shares surged more than 13%, pushing the stock to overbought conditions in the 14-day RSI. The stock price also broke above the 100-day MA and the trendline resistance to hit new historical highs.

Investors can target short-term pullbacks at $146.35 and $138.93. However, the bull run could continue after that. 

Bottom line: It may be best to wait for a short-term pullback

If you are yet to buy NKE shares, it may be best to wait for a short-term pullback. However, the long-term outlook remains positive as analysts issue upbeat growth prospects.

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