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Goldman Sachs maintained its buy rating and $72.00 price target on Nike stock (NYSE:NKE) Monday, despite acknowledging widespread investor skepticism about the athletic wear giant’s near-term prospects. Currently trading at $60.53 with a market capitalization of $89.3 billion, InvestingPro analysis suggests Nike is slightly undervalued compared to its Fair Value. The firm noted that many investors expect Nike’s fiscal year 2026 guidance to fall "well below consensus" when announced.
The investment bank reported that while investors believe Nike is implementing appropriate strategic actions to revitalize growth, debates continue regarding how low earnings might go before recovering and the timeline for returning to revenue and profit growth. These concerns are reflected in recent performance metrics from InvestingPro, showing a 7.3% revenue decline in the last twelve months and an expected 11% decrease in fiscal 2025. These challenges come as Nike faces multiple headwinds entering fiscal 2026, including franchise management actions, intense competition in casual footwear, inventory issues, digital platform reset, China market difficulties, and tariff impacts.
Goldman Sachs indicated its research shows consumer engagement with Nike’s recent product innovations has improved alongside refreshed marketing efforts, providing confidence in management’s strategic direction. However, the firm acknowledged that other brand momentum indicators remain "rangebound or mixed" in performance.
Most investors anticipate weak results for Nike’s fourth fiscal quarter and conservative guidance for fiscal 2026, particularly for the first half of the year, according to Goldman Sachs’ market assessment. The firm’s own fiscal 2026 projections fall below the current Wall Street consensus.
Despite these challenges, Goldman Sachs maintained its positive outlook on Nike stock, stating that "strategic changes at the company are beginning to take root," supporting its continued buy recommendation amid the current investor skepticism. Nike maintains strong fundamentals with a healthy current ratio of 2.19 and has raised its dividend for 23 consecutive years. InvestingPro offers 8 additional key insights about Nike’s financial health and growth prospects in its comprehensive Pro Research Report, available to subscribers along with detailed analysis of 1,400+ other US stocks.
In other recent news, Nike has announced a significant change in its sales strategy by resuming direct sales of its products on Amazon (NASDAQ:AMZN), a move confirmed by an Amazon spokesperson. This marks a shift from Nike’s previous decision to halt sales on the platform in 2019 due to concerns about counterfeit goods and unauthorized sellers. Additionally, Nike has implemented price increases on select footwear models, including the Vomero 18 and Pegasus Premium, with the changes now effective at major retailers. Truist analysts are monitoring these price adjustments and have maintained a buy rating on Nike stock, noting strong sales performance in the running shoe segment. The Vomero 18 and Pegasus Premium continue to show robust sales, particularly at Dick’s Sporting Goods (NYSE:DKS) and Fleet Feet.
In corporate developments, Nike has appointed Michael Gonda as its new Executive Vice President and Chief Communications Officer, effective July 2025. Gonda will lead the company’s global communications strategy, bringing experience from his previous roles at McDonald’s Corporation (NYSE:MCD) and Chobani. This appointment is viewed as a strategic move to enhance Nike’s brand reputation and connection with athletes. These recent developments reflect Nike’s ongoing efforts to navigate market dynamics and strengthen its brand presence.
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