Nike’s (NKE) turnaround plan under CEO Elliott Hill is expected to take time, which has weighed on the athletic apparel maker’s stock. However, Piper Sandler analyst Anna Andreeva is optimistic and predicts a return to profitable growth in three to four quarters. Despite increased competition from brands like On Running (ONON), HOKA (DECK), New Balance, and Asics, she upgraded Nike to Overweight and raised its price target by 25% to $90 per due to the company’s history of successful comebacks.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
Although short interest in Nike shares has jumped by 30% since September, Andreeva believes that the company’s growth depends on its ability to balance full-price and off-price sales in its direct-to-consumer digital strategy. Positive performance in categories like training, global football, and baseball, as well as a rebound in running, shows that there are early signs of improvement, which is offsetting weaker sportswear sales.
For Fiscal Year 2026, Andreeva forecasts that margin growth will be driven by higher average selling prices, less discounting, and stronger margins in Nike Direct and Converse. However, this will be partially offset by rising product costs and supply chain challenges due to an anticipated sales decline in the first half of 2026.
Is NIKE Stock a Buy, Sell, or Hold?
Overall, analysts have a Moderate Buy consensus rating on NKE stock based on 15 Buys, 17 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 31% decline in its share price over the past year, the average NKE price target of $86.57 per share implies 20.8% upside potential.
