Analyst Alison Fok from DBS maintained a Hold rating on Nike (NKE – Research Report) and keeping the price target at $75.00.
Alison Fok has given her Hold rating due to a combination of factors impacting Nike’s current market position. Nike’s digital sales have shown significant growth, particularly through Nike Brand Digital, which has experienced a robust compound annual growth rate since fiscal year 2019. Despite this, the company has faced challenges such as reduced foot traffic and increased promotions, leading to weaker sales performance in fiscal year 2024.
Additionally, macroeconomic challenges have affected Nike’s key markets, including the United States and Europe, Middle East & Africa, with China’s recovery not meeting expectations. While Nike has managed inventory levels effectively and is planning to introduce new footwear models, these efforts are balanced by potential risks such as supply chain disruptions and fluctuating consumer confidence. Consequently, Alison Fok maintains a Hold rating with a target price of USD 75, reflecting a cautious outlook amid these mixed signals.
In another report released on February 19, Telsey Advisory also maintained a Hold rating on the stock with a $80.00 price target.