We like Nike

On Friday, Bright highlighted the fact that Nike has struggled recently, and that the company will need to up its game if it is to compete successfully against a slew of newer athleisure brands. I'm a fan of the ON brand, the shoes stand out and look comfortable, although I don't own any yet. Time will tell if the company has what it takes to become a truly global contender, and if they will still be relevant after this fashion cycle.

Interestingly, two other reports about Nike were also released on Friday. Oppenheimer, the investment bank, put out a research note placing a $120 price target on Nike, 24% higher than the current level. They reinstated Nike as a top, mega-cap pick across the firm's Consumer Growth & eCommerce coverage.

The second Nike report was from Barron's, the financial publication, which also forecast a turnaround in fortunes for the shoe maker.

Nike reports its results on Thursday. The theory is that the current Nike share price already reflects a lot of bad news. So if the update is not too negative, traders should react positively. Looking ahead, the Olympics in Paris in July should be a nice boost to Nike sales. Added to that, the company plans to launch a new range of shoes, which almost always gets consumers excited.

We like the athleisure industry and expect continued sales growth across the industry, and Nike is the leader. This also isn't the first time that Nike has faced tough times or competition from upstarts. It is a stock that we are watching closely, but it isn't the time to be reaching for your sweat towel.