Nike stock rating upgraded to Buy by Argus on recovery signs

Published 01/07/2025, 14:22
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Investing.com - Argus upgraded Nike (NYSE:NKE) from Hold to Buy with a price target of $85.00 on Tuesday, following the stock’s impressive 15.66% gain over the past week. According to InvestingPro data, Nike maintains a "GOOD" overall financial health score.

The research firm cited an ongoing recovery at the athletic apparel giant following efforts to clear inventory in the second half of fiscal year 2025, which has resulted in more up-to-date products attracting customers.

Argus noted that Nike is leveraging its e-commerce channel to improve pricing, contributing to the positive outlook.

The firm expressed confidence in Nike’s long-term prospects, expecting the company to maintain its dominance in the athletic apparel and footwear markets, particularly highlighting its strong position in high-end footwear.

Despite acknowledging fierce industry competition, Argus believes Nike will build on its market leadership through its globally recognized brand, innovative products, economies of scale, and continued growth in emerging markets.

In other recent news, Empire Company’s fourth-quarter fiscal 2025 results have led BMO Capital to raise its price target to C$55.00 from C$53.00, while maintaining a Market Perform rating. BMO noted improvements in Empire’s selling, general, and administrative expenses, though it expressed caution about assuming further acceleration in same-store sales. The firm remains optimistic about a 20 basis point annual gross margin expansion for Empire. Meanwhile, Nike has seen multiple analyst firms revise their price targets following recent developments. Truist Securities increased its price target to $85.00 from $73.00, citing rapid improvements in Nike’s turnaround efforts and positive trends in channel inventories and Holiday order books. Piper Sandler also raised its target to $80.00 from $70.00, highlighting better-than-expected sales guidance and signs of demand inflection in the Holiday wholesale order book. UBS adjusted its price target for Nike to $63.00 from $56.00, noting improvements in inventory levels and a stronger sales growth outlook, though it maintained a Neutral rating due to concerns about potential tariff risks. Bernstein reiterated its $85.00 price target on Nike, pointing to progress in inventory clearance and order book growth, while acknowledging ongoing challenges in the Lifestyle and Jordan categories.

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