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Pro Analysis

Nike shares to rally on new Air VaporMax shoe, Under Armour's struggles, Credit Suisse says

An image of the Nike Air VaporMax is projected on a screen as Nike CEO Mark Parker speaks during a news conference, March 16, 2016, in New York.
Mary Altaffer | AP
An image of the Nike Air VaporMax is projected on a screen as Nike CEO Mark Parker speaks during a news conference, March 16, 2016, in New York.

Nike shares will continue to outperform the market this year on the successful release of the new Air VaporMax shoe line this month and as the footwear and apparel giant takes back market share from Under Armour, a Credit Suisse analyst said in a note Tuesday.

"We are becoming increasingly bullish on Nike as we see a series of incremental revenue catalysts that suggest the recent period of market share losses will moderate in 2017," wrote Christian Buss, who reiterated an outperform rating on the stock and raised his share price target to $67 from $60.

"In the near term, we are more positive than the street in our 3Q17 and FY17 revenue and EPS expectations. Longer term, we believe the company can maintain high single-digit topline growth and teens EPS growth, making it a true standout in the softlines space," Buss added.

Nike's stock was down more than 18 percent in 2016, but is up more than 11 percent this year to $56.67 through Monday, almost double the return of the S&P 500. The analyst's new 12-month price target would mean an 18 percent gain from Monday's close.

These are the five catalysts Buss sees driving the stock this year: