Nike (NKE – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst John Kernan from TD Cowen reiterated a Hold rating on the stock and has a $75.00 price target.
John Kernan’s rating is based on a combination of factors that reflect both optimism and caution regarding Nike’s current market position. While there are positive signs, such as improvements in promotional strategies within North America and effective franchise management in the running category, demand trends remain weak, particularly into the spring season. This mixed outlook leads to a Hold rating, as the company is expected to face challenges in the near term.
Despite raising the price target to $75, Kernan notes that inbound data, such as search and traffic metrics, remain negative, with significant declines in e-commerce traffic. However, there is some optimism for the future, with expectations of gross margin recovery and slight top-line growth anticipated in the latter half of FY26. The macroeconomic environment remains uncertain, and while there are potential growth opportunities, particularly in China, the overall confidence in sector estimates is lower than usual. This cautious stance, combined with the need for more clarity on collaborations and market opportunities, supports the Hold rating.
In another report released on March 13, Morgan Stanley also maintained a Hold rating on the stock with a $72.00 price target.