Analyst Randal Konik from Jefferies maintained a Buy rating on Nike (NKE – Research Report) and keeping the price target at $115.00.
Randal Konik has given his Buy rating due to a combination of factors that suggest potential for Nike’s stock to rebound despite current challenges. Although Nike’s third-quarter results are expected to show significant declines in revenue, EBIT margins, and EPS, these challenges are already anticipated by the market. The company’s focus on inventory management and product innovation, particularly in the running category, indicates potential for recovery.
Additionally, Nike’s efforts to balance its distribution strategy and improve full-price selling through retail partnerships are expected to mitigate some of the pressures on sales. While the stock’s valuation appears high based on near-term earnings, the potential for significant upside by fiscal 2027 makes it attractive. The anticipated stabilization of market share losses and a strategic focus on long-term growth further support the Buy rating.
In another report released today, Evercore ISI also maintained a Buy rating on the stock with a $97.00 price target.