Home Business Guggenheim names Nike its best idea in 2022, citing metaverse play

Guggenheim names Nike its best idea in 2022, citing metaverse play

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A customer shops at the Nike store on December 21, 2021 in Miami Beach, Florida.

Joe Raedle | Getty Images

Nike shares rose about 1% in extended trading on Monday after Guggenheim named the retailer its “best idea” for 2022.

Analyst Robert Drbul said in a note to clients that Nike’s already dominant market share should continue to grow as it keeps scaling online and innovates with new footwear and apparel products in the new year.

Near term, Nike has been hurt by global supply chain disruptions, he said, but the company should still be able to hit the financial targets it laid out last June.

Nike has also seen momentum slow for its brand in China, which was a key point of weakness on the company’s latest earnings report.

Drbul said, however, that any concern regarding China “presents 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.

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