Rising Global Golf Market to Have Little Impact on Nike’s Stock
We currently have a Trefis price estimate of $68 for NIKE’s stock, about 7% below the current market price of $72.60. Trefis members have created forecasts for Global Golf Market Size driver of NIKE’s (NYSE:NKE) stock over the last week. Their forecasts suggest that Global Golf Market Size will trend higher than the Trefis forecast.
However, there will be very little upside to Nike’s stock from this driver, because Nike Golf forms only around 3% of the $68 Trefis price estimate for Nike’s stock. Nike derives the majority of its value from its branded footwear (44%), and its closest competitors in this market include K-swiss Inc. (NASDAQ:KSWS), Steven Madden (NASDAQ:SHOO) and Adidas AG (PINK:ADDYY).
Below are recent estimates created by Trefis members for the Global Golf Market Size. We’ve also shown our forecasts for Nike Golf Market Share below which as important driver of Nike’s Golf business.
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The average of forecasts for Global Golf Market Size created by Trefis members indicated a projected increase from 16 billion in 2010 to about 20 billion by the end of the Trefis forecast period, compared to the baseline Trefis estimate of an increase from about 15 billion in 2010 to about 17 billion by the end of the Trefis forecast period. The member estimates imply little upside to the Trefis price estimate for NIKE’s stock. In the past, Global Golf Market Size has increased from 13 billion in 2006 to 14.4 billion in 2009.
You can drag the forecast trend-line above to express your own view, and see the sensitivity of NIKE’s stock to Global Golf Market Size.
Our complete analysis for Global Golf Market Size is here.
The baseline Trefis estimate projects an increase from 4.4% in 2010 to 5.5% by the end of the Trefis forecast period. In the past, Nike Golf Market Share has decreased from 4.8% in 2006 to 4.3% in 2009.
You can drag the forecast trend-line above to express your own view, and see the sensitivity of NIKE’s stock to Nike Golf Market Share.