Nike shares rose about 1% in extended trading on Monday after Guggenheim named the retailer its “best idea” for 2022.
Guggenheim’s analyst Robert Drbul sees Nike’s dominant market share growing more as it keeps scaling online and innovates with new footwear and apparel products in the new year.
Drbul sees Nike hitting its financial targets though it has been hurt by global supply chain disruptions and slow momentum for its brand in China.
Drbul also sees Nike’s concerns regarding China as “ an opportunity for long term investors as Nike continues to deliver and innovate products that connect with local consumers by promoting healthy lifestyle and other important societal themes.”
Guggenheim also said it will be closely watching Nike’s engagement in the metaverse in 2022.
In December, the retailer announced it bought virtual sneaker company RTFKT for an undisclosed amount.
Nike shares are up almost 18% from a year earlier. Its market value is $263.8 billion.
