Inter Milan fans: Buy Nike?
Ian Tam: Inter Milan are a football team based in Milan.
Francesco Lavecchia: I’m an Inter Milan fan and hopefully we will win the next Champions League.
Tam: Well you are clearly invested in that and I hope Inter Milan win. But do you think there is another way you can invest in the team? Maybe you can invest in Nike, one of their main sponsors. If you did, would you be a champion? Nike is a leader in sportswear. Its stock is trading at around US $ 137, above our fair value estimate of US $ 118. It has a wide economic divide.
David Swartz: We consider Nike to be the leader in the global sportswear and footwear market. In fact, it’s the only company in this industry to be awarded a Morningstar Wide Mode Award. Nike sponsors more athletes, teams and sports leagues than anyone else, which we believe strengthens the intangible asset of its brand. There was a surge in sales of sports equipment during the pandemic, and Nike was a major beneficiary. However, its stock price is more than doubled from its March 2020 low. Trading above our fair value estimate of $ 118, we have now rated it at 2 stars.
Tam: If you want to invest in Inter Milan through Nike, your wallet may well surge towards victory.