Goldman upgrades Nike to buy: 'On the cusp of a sharp acceleration'

Workers install a Nike logo lamp outside the Wukesong Arena in Beijing, August 28, 2019.
Tingshu Wang | Reuters

Goldman Sachs upgraded Nike on Thursday and said it saw the company as a "unique asset" with China as a "key driver of growth."

The firm upgraded the company to buy from neutral and added the stock to its conviction buy list. Goldman also raised its price target to $112 from $95.

Shares of Nike are up 1.94% to $94.54 in early trading.

"We believe Nike is on the cusp of a sharp acceleration in EPS growth," Goldman Sachs analyst Alexandra Walvis said. The firm also said it sees earnings growing 19% annually over the next 3 years and that China should help accelerate that growth at "almost 3x the rate of other regions."

More In Pro News and Analysis

CNBC ProSantoli's Friday market notes: The inflation mini-panic subsides amid a broad rally for stocks
CNBC ProAs growth stocks struggle, Wall Street analysts say bet on these value names
CNBC ProCramer says investors are misguided on Disney, expects theme parks and movies will bounce