Nike, Inc. (NKE) is heading for a weekly gain as multiple Wall Street firms reaffirmed positive ratings on the sportswear company despite a 32% stock decline since the start of the year. BTIG, Jefferies, and Bernstein maintained Buy or Outperform ratings while trimming price targets, citing ongoing restructuring efforts aimed at improving EBIT margins and cash flow. Analysts argued that investor pessimism may have become excessive even as Nike works through near-term challenges including weaker sportswear and Jordan streetwear segments.
Wall Street Firms Maintain Positive Ratings on Nike Stocks
BTIG maintained its Buy rating and $55 price target on Nike stocks, stating that the roughly 32% drop in Nike shares since the start of the year has created an overly negative market view. The firm expressed confidence that management's initiatives will improve EBIT margins and strengthen cash flow in the coming quarters.
Jefferies lowered its price target from $90 to $75 but kept its Buy rating, noting that Nike is showing signs of improvement in China and that its performance products continue to grow. Jefferies pointed out that sportswear and Jordan streetwear remain weaker areas that will require additional time to recover, prompting lower earnings estimates for fiscal 2027 and 2028.
Bernstein trimmed its price target to $72 from $80 while maintaining an Outperform rating. The firm expects revenue to remain under pressure during fiscal 2027 as Nike limits promotional activity and reduces sales of lower-quality products. Bernstein identified Nike's investor day in November as the next major event for shareholders.
Nike stock edged 0.05% lower overnight, heading into Thursday. The stock has declined 43% in the last 12 months.
Retail Traders Express Optimism on Stocktwits
On Stocktwits, retail sentiment around Nike stock remained in extremely bullish territory. The stock saw a 285% increase in message volume over the past week, with a 0.6% gain in watchers.
Some retail traders expressed optimism that the U.S. national team's latest FIFA World Cup win could boost Nike's brand visibility and demand for soccer-related merchandise. One user stated that France, Brazil, England, Canada, USA, and Norway all wear Nike, providing thousands of hours of free TV and social media advertising. The user added that the stock is worth three figures with a fair price above $200.
Another user said the World Cup's popularity directly translates into sales for Nike. A third user expressed optimism about the company's positioning for future growth.
FAQ
What price targets did Wall Street firms set for Nike stocks?
BTIG set a $55 price target with a Buy rating. Jefferies lowered its target from $90 to $75 while maintaining a Buy rating. Bernstein reduced its target to $72 from $80 with an Outperform rating.
How much has Nike stock declined in the last 12 months?
Nike stock has declined 43% in the last 12 months and is down 32% since the start of the year. The stock edged 0.05% lower overnight heading into Thursday.
