KeyBanc upgrades Nike stock rating to Overweight on improving trends

Published 02/10/2025, 06:58
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Investing.com - KeyBanc upgraded Nike (NYSE:NKE) stock rating from Sector Weight to Overweight and set a price target of $90.00. According to InvestingPro data, Nike currently trades at a P/E ratio of 35.8x, with analyst targets ranging from $38 to $120.

The upgrade comes as KeyBanc believes Nike’s first-quarter results demonstrate improving trends resulting from the company’s Win Now initiatives. With a market capitalization of $109.6 billion and a solid current ratio of 2.19, Nike maintains strong financial fundamentals.

KeyBanc acknowledged some near-term challenges remain for Nike, including issues related to tariffs, digital operations, and the Chinese market.

Despite these challenges, the firm expressed confidence that Nike’s Sport Offense strategy, innovation pipeline, and marketplace resets will position the company for sustainable growth and margin recovery.

KeyBanc’s $90 price target implies a 29.2x multiple on the firm’s fiscal year 2027 earnings per share estimates, reflecting its increased confidence in Nike’s broader turnaround story. Discover 12 additional exclusive insights about Nike on InvestingPro, including detailed valuation metrics and growth forecasts.

In other recent news, Nike’s financial performance has been a focal point for analysts, with several firms adjusting their ratings and price targets. The sportswear company reported a 4% year-over-year revenue growth in North America, while EMEA revenue remained flat when excluding foreign exchange impacts. Nike’s first-quarter results exceeded expectations, prompting UBS to raise its fiscal year 2026 and 2027 earnings per share estimates by 10% and 2%, respectively, although they maintained a Neutral rating with a $71 price target. Truist Securities reiterated a Buy rating, citing ongoing turnaround progress, and set a price target of $85. Piper Sandler increased its price target to $84, noting a sales inflection two quarters ahead of expectations, despite challenges in China. TD Cowen also raised its price target to $86, maintaining a Buy rating. Bernstein SocGen Group reiterated an Outperform rating with a $90 price target, highlighting positive momentum and improved sales and margins. These developments reflect a generally optimistic outlook from analysts, who see signs of recovery and progress in Nike’s financial performance.

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