Nike (NKE  ) shares moved 8% lower on fears that the Coronavirus would impact the company's production and sales in China. Currently, 16% of Nike's revenue comes from China and nearly a third of its apparel and shoes are sourced from China. Further, if the coronavirus outbreak gets worse, slower global growth could negatively impact Nike's top and bottom-line.

It's a rare breather for the stock, as it has nearly doubled since late-2017 with a couple of small 10% dips along the way. In hindsight, these dips were clear opportunities to add shares, and buyers were quickly rewarded as the stock powered to new highs.

One interesting development to note is that both Nike and the broad stock market dipped on CoronaVirus fears. While the stock market has recovered its previous highs, Nike has lagged and is closer to its lows than previous highs. Nike was 3% higher following analyst upgrades, but these gains have been given back. This is the first time since late-2017 that it has underperformed the broad average.

Analyst Upgrades

Many analysts are seeing this dip as yet another buying opportunity for traders and investors. UBS (UBS  ) upgraded Nike to a "buy" from a "neutral" rating. JPMorgan (JPM  ) added the stock to its "analyst focus list", meaning that it's one of the bank's high-conviction picks. Both are long-term bullish on the stock and don't see the Coronavirus having a meaningful impact on Nike's long-term earnings power. UBS raised its price target on the stock to $136 which gives it a 40% upside. JPMorgan's target on the stock is $111 per share which gives it a 12% upside.

Nike's price to earnings ratio of 32 is significantly higher than the current S&P 500 (SPY  ) price to earnings ratio of 25. However, analysts see Nike as undervalued due to its higher than average growth rate. Thus, its price to earnings growth ratio which comes in at 1.5 which is below the current average of 1.8. Another reason analysts are bullish on Nike is that it has successfully opened up a direct to consumer online retail channel. Given this development, analysts are projecting Nike to grow revenue in the high single digits and earnings in the mid-teens over the next decade.