Analyst Aneesha Sherman of Bernstein maintained a Buy rating on Nike (NKE – Research Report), retaining the price target of $102.00.
Aneesha Sherman has given her Buy rating due to a combination of factors influencing Nike’s future performance. One key reason is the expected strong growth in Nike’s Performance Footwear segment, which is anticipated to achieve double-digit growth in FY26, driven by increasing order volumes and positive retailer feedback. Additionally, the Apparel segment is projected to grow above the market average, supported by new initiatives like the collaboration with SKIMS.
Despite the challenges faced by the Classic Lifestyle segment, which is expected to continue its decline, the overall growth outlook for Nike remains positive. The company’s margins are expected to improve gradually, aided by better full-price selling and operating leverage, although the shift in product mix towards Performance shoes may limit margin recovery. Nonetheless, the potential for earnings growth in FY26 is significantly higher than current estimates, suggesting that Nike can achieve sustained structural earnings growth in the coming years.
In another report released yesterday, Jefferies also upgraded the stock to a Buy with a $115.00 price target.