Analyst Aneesha Sherman from Bernstein maintained a Buy rating on Nike (NKE – Research Report) and keeping the price target at $102.00.
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Aneesha Sherman has given her Buy rating due to a combination of factors surrounding Nike’s strategic direction and market positioning. The company’s focus on performance footwear, particularly in the areas of running, football, basketball, and training, is expected to drive growth. The new CEO, Elliott Hill, has expressed confidence in the pipeline for 2025-26, with positive feedback and increasing orders from retailers reinforcing this outlook.
Conversely, while the lifestyle segment is experiencing a downturn, with anticipated declines in key franchises like Jordan, AF1, and Dunk, management is taking steps to rejuvenate this segment through new launches. The gradual recovery in gross margins, despite being at a historical low, along with the attractive risk-reward profile, underpins the Buy rating. Although the immediate growth may be limited, prospects for improvement in the second half of FY26 and beyond present a promising investment opportunity.
In another report released yesterday, Needham also maintained a Buy rating on the stock with a $84.00 price target.