Nike shares gain the most in three months on Wednesday, company may soon sell directly on Amazon, Goldman Sachs says

According to Goldman Sachs, Nike Inc (NKE) could soon sell directly on Amazon.com Inc. A potential partnership may heighten competition for traditional sporting goods retailers such as Finish Line Inc, Dicks Sporting Goods Inc, Hibbett Sports Inc and Foot Locker Inc.

Nike shares registered their largest daily surge since March 23rd during the trading session on Wednesday. The stock went up 2.00% ($1.03) to $52.59, after touching an intraday high at $52.69, or a price level not seen since June 15th ($54.05). In the week ended on June 18th the shares of the athletic apparel manufacturer lost 4.41% of their market value compared to a week ago, which marked the first drop in the past four weeks. However, the stock has pared its loss to 0.75% so far during the current month, following a 4.37% slump in May. The latter has been a third consecutive monthly loss and also the sharpest one since October 2016. For the entire past year, Nike shares retreated 18.67%.

Such a partnership might allow the worlds largest sportswear manufacturer to weed out the currently available excess discounted inventory via third-party retailers, Goldman Sachs stated in a note to clients. At the same time, Nike may be able to sell more full-price items on-line.

The move could also allow the athletic apparel company to generate additional revenue of between $300 million and $500 million (about 1% of its sales worldwide) in the United States as a wholesale dealer on Amazon, Goldman Sachs noted.

“Taking this step would give Nike direct economic exposure to a large and fast growing distribution channel, while improving the brand presentation and expanding access to millennial shoppers”, Lindsay Drucker Mann, an analyst for Goldman Sachs, was quoted as saying by Reuters.

The news emerged at a time, when Nike has already announced plans to reduce its global workforce by 2% as well as to trim the shoe styles it offers by a quarter.

According to CNN Money, the 30 analysts, offering 12-month forecasts regarding Nike Incs stock price, have a median target of $62.50, with a high estimate of $75.00 and a low estimate of $42.00. The median estimate is an 18.84% surge compared to the closing price of $52.59 on June 21st.

The same media also reported that 18 out of 36 surveyed investment analysts had rated Nike Incs stock as “Buy”, while 13 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Nike stock are presented as follows:

R1 – $52.66
R2 – $52.73
R3 (Range Resistance – Sell) – $52.81
R4 (Long Breakout) – $53.02
R5 (Breakout Target 1) – $53.28
R6 (Breakout Target 2) – $53.39

S1 – $52.52
S2 – $52.45
S3 (Range Support – Buy) – $52.37
S4 (Short Breakout) – $52.16
S5 (Breakout Target 1) – $51.90
S6 (Breakout Target 2) – $51.79

By using the traditional method of calculation, the weekly levels of importance for Nike Inc (NKE) are presented as follows:

Central Pivot Point – $52.19
R1 – $53.58
R2 – $56.07
R3 – $57.46
R4 – $58.86

S1 – $49.70
S2 – $48.31
S3 – $45.82
S4 – $43.34