Nike Inc’s NKE.N shares were set to open at a record high on Wednesday after the world’s largest sports shoemaker posted stellar quarterly results, driven by online sales.

Shares of the company were up 12.6% at $131.6 in premarket trading.

The brand’s digital sales, especially in North America, helped offset fall in sales at traditional brick-and-mortar stores due to COVID-19 restrictions and social-distancing measures.

At least seven brokerages raised their 12-month price targets on the stock with the biggest bump coming from Jefferies analysts, who raised their target to $117 from $95.

Jefferies analyst Randal Konik said that improvement in North America is the “biggest positive surprise” from Nike’s results, and expects the Beaverton, Oregon-based company to do well in the long term, as consumers focus more on health and wellness.

Nike’s results should come as a relief to investors after the company, just a quarter ago, reported a surprise loss of $790 million as retailers canceled orders and people kept away from Nike stores in key markets including North America, Europe and China.

“Nike offered its clearest signal yet that a higher digital mix and improving margins within the digital segment will push consolidated margins above historical levels,” Credit Suisse analyst Michael Binetti said.


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