Still betting on Nvidia? Our AI picked this stock instead; it’s up 96%+ THIS MONTH
Investing.com - Williams Trading raised its price target on Nike (NYSE:NKE) to $100.00 from $73.00 while maintaining a Buy rating on the athletic footwear and apparel company. With a market capitalization of $115 billion, Nike currently trades at $77.94. According to InvestingPro analysis, the stock is currently trading slightly above its Fair Value.
The firm expects Nike sales and margins to begin positively inflecting within six weeks, noting that the U.S. marketplace will be "pretty much cleaned up" by the end of September. Some excess inventory of specific styles including Dunks and Air Max models remains in the marketplace, while cleanup in Greater China is underway but may take another 6 to 9 months. Nike maintains strong financial fundamentals with a healthy gross margin of 42.7% and a solid current ratio of 2.21, indicating robust liquidity. InvestingPro subscribers can access 12 additional key financial metrics and insights about Nike’s financial health.
Williams Trading highlighted that holiday orders for October-December deliveries will be up year-over-year, including significant quantities of new products such as additional colors of the Pegasus Premium, Vomero Plus, Vomero Premium, and V5 models.
The firm identified several positive inflections that are underway or imminent, including Air Force One sales becoming positive year-over-year at full price, U.S. retailers expressing satisfaction with Jordan Retro holiday and spring product offerings, and existing U.S. wholesale accounts planning Nike and Jordan purchases up mid-single to double digits over the next 6-9 months.
Nike is also expanding its distribution channels, with a small collection of core products now selling on Amazon, and the company has opened or will soon open Nike or Jordan Jumpman wholesale distribution to retailers including Academy Sports, Famous Footwear, Journeys, and several other chains. The company has demonstrated consistent shareholder returns, maintaining dividend payments for 42 consecutive years. For deeper insights into Nike’s growth strategy and financial outlook, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Nike has made several notable announcements and adjustments. The company corrected an error in its annual report regarding product purchase obligations, clarifying that as of May 31, 2025, these obligations total approximately $5 billion, all payable within the next 12 months. This adjustment provides a clearer picture of Nike’s financial commitments. On the analyst front, Bernstein raised its price target for Nike to $90, citing potential growth from the Jordan brand despite its recent sales decline. In contrast, UBS maintained a Neutral rating with a $63 price target, indicating that Nike’s turnaround may take longer than expected. Stifel also reaffirmed a Hold rating, noting that inventory challenges persist in Greater China and North America. Meanwhile, Deutsche Bank raised its price target for JD Sports Fashion, highlighting potential benefits from a Nike comeback as a factor. These developments underscore the varied perspectives on Nike’s current financial and operational trajectory.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.