Following Nike’s (NKE) first quarter results, Canaccord consumer and retail analyst Camilo Lyon maintained his HOLD rating and $96 price target. Mr. Lyon said the company’s top line is accelerating, but so is spending. According to Mr. Lyon:

“NKE’s results were nothing short of impressive, in our view. A company the size of NKE delivering revenue growth of 18% with future orders that point to an acceleration in the business demonstrates just how strong the athletic cycle in running and basketball really is, despite challenging macroeconomic conditions.”

But he added that, “NKE selling general and administrative expenses are now expected to increase to the low to mid-teens . . . in order to continue supporting . . . the London Olympics and the European Football Championship. This increased rate of spend is limiting the flow through to the bottom line, however.”