Nike upgraded to Buy from Hold at Jefferies

Jefferies upgraded Nike (NKE) to Buy from Hold with a price target of $115, up from $75. The company’s new CEO is tackling product and distribution issues “head-on, positioning the brand to again outgrow the market and take back lost share,” the analyst tells investors in a research note. The firm says its survey work shows that Nike’s brand remains very strong, proving its issues were self-inflicted and competitive threats are “less severe.” Jefferies sees a “V-shaped” earnings and margin recovery in fiscal 2027 for Nike. well ahead of consensus estimates. This should drive the stock’s valuation much higher from current levels, contends the firm. It calls Nike a new top pick.