Analyst says Nike poised for growth in China

JPMorgan analyst Robert Samuels said in a client note that China is "clearly" Nike's biggest growth opportunity over the next several years.

Nike already does $1 billion in business in the country and China is already Nike's second largest market, Samuels said.

The Beaverton, Ore.-based Nike currently is in 300 cities in China and has plans to expand to 500 over the next five years.

Nike's presence in China will long outlast the Olympics, Samuels wrote.

"In our view, the brand is doing a very good job connecting with Chinese youth and their growing participation in sports," Samuels wrote. "Olympic fever is just a small part of Nike's current success in China as a booming retail environment and optimism in the country's future are helping to fuel consumer spending."

He rates Nike "Overweight."

Shares rose $2.23, or 3.4 percent, to $67.90 during afternoon trading. The stock has traded between $51.50 and $70.60 over the past year.