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Investing.com - Needham raised its price target on Nike (NYSE:NKE) to $78.00 from $66.00 on Friday, while maintaining a Buy rating on the athletic footwear and apparel giant. According to InvestingPro data, Nike, currently trading at $62.54, appears slightly undervalued based on its Fair Value analysis. The company, with a market capitalization of $92.31 billion, remains a prominent player in the Textiles, Apparel & Luxury Goods industry.
The sportswear company reported fourth-quarter fiscal 2025 earnings that, while down year-over-year, exceeded low market expectations. Nike posted earnings per share of $0.14, slightly above the Street consensus of $0.13, despite revenues declining 11% on a constant currency basis. InvestingPro analysis shows that 8 analysts have revised their earnings upward for the upcoming period, suggesting growing confidence in Nike’s recovery potential.
The revenue decline was not as severe as Nike’s previous guidance, which had projected a mid-teens percentage drop. This relative outperformance has sparked optimism that the company’s challenging period may be nearing its end.
Nike’s first-quarter revenue guidance also showed signs of improvement, with the company forecasting a mid-single-digit percentage decline, better than the consensus expectation for a high-single-digit drop.
Following the results, Needham revised its earnings per share estimates upward for fiscal years 2026 and 2027 to $1.69 and $2.44, respectively, from previous estimates of $1.52 and $2.15.
In other recent news, Nike reported its fourth-quarter fiscal 2025 results, showing an 11% year-over-year currency-neutral revenue decline, the steepest since implementing its Win-Now strategy. Despite this, the results exceeded Street expectations by $400 million in revenue and $0.02 in earnings per share, according to Stifel. Morgan Stanley (NYSE:MS) raised its price target for Nike to $64.00, citing sales-driven upside and suggesting the company’s fundamentals may be stabilizing. Jefferies maintained a Buy rating and noted improvements in Nike’s wholesale strategy and running product category.
Evercore ISI increased its price target for Nike to $90.00, highlighting that fourth-quarter results exceeded expectations, with operating income beating consensus by 82%. The firm expects revenue growth and gross margin to improve sequentially, with a return to positive year-over-year revenue growth anticipated in the second half of fiscal 2026. KeyBanc maintained a Sector Weight rating, acknowledging positive effects from Nike’s strategic initiatives but noting ongoing challenges, particularly in digital sales and classics products. The company indicated that inventory is expected to reach a clean position by the end of the first half of fiscal 2026.
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