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Investing.com - Piper Sandler raised its price target on Nike (NYSE:NKE) to $80.00 from $70.00 on Friday, while maintaining an Overweight rating on the $106.7 billion athletic footwear and apparel giant. According to InvestingPro data, Nike maintains a prominent position in the Textiles, Apparel & Luxury Goods industry, though current analysis suggests the stock is trading above its Fair Value.
The research firm cited Nike’s fiscal first-quarter 2026 sales guidance for a mid-single-digit decline as better than Wall Street expectations for a high-single-digit drop. This aligns with InvestingPro data showing revenue declined 9.8% in the last twelve months, with analysts anticipating further sales decline this year. Piper Sandler highlighted comments about Nike’s Holiday wholesale order book trending upward as a positive indicator of demand inflection.
Nike is making progress in both introducing innovation and rationalizing its Classics portfolio, according to the research firm. Running category sales increased by high single digits in fiscal fourth quarter 2025, while the Air Force 1 line is stabilizing, though Dunk still requires additional work.
The implied earnings range for fiscal first quarter 2026 is approximately $0.22-$0.28, which Piper Sandler noted is the closest to consensus estimates in several quarters. The firm expects Wall Street projections to settle between $1.60-$1.80 for the full year, with a fiscal 2027 bull case in the $2.50-$2.80 range.
Piper Sandler’s new price target represents a 27x enterprise value to EBITDA multiple on fiscal 2027 estimates, up from 23x previously, reflecting signs of business stabilization. The firm believes wholesale could return to growth next year, while a return to double-digit margins could translate to over $3.00 in earnings power.
In other recent news, Nike’s fourth-quarter fiscal 2025 earnings report has prompted several investment firms to adjust their outlooks on the company. Needham raised its price target for Nike to $78.00 from $66.00, maintaining a Buy rating, after the company posted earnings per share of $0.14, slightly above expectations, despite an 11% revenue decline. UBS also increased its price target to $63.00 from $56.00, citing improved inventory levels, though it kept a Neutral rating due to concerns about potential tariff impacts. Meanwhile, Williams Trading reiterated a Buy rating with a $73.00 price target, expecting a recovery in Nike’s sales and margin trends by the fourth quarter of fiscal 2025.
Stifel maintained its Hold rating and a $64.00 price target, acknowledging the steep revenue decline but noting some positive indicators such as growth in wholesale orders. Morgan Stanley (NYSE:MS) raised its price target to $64.00 from $61.00, suggesting that Nike’s fundamentals may be stabilizing, though it maintained an Equalweight rating due to uncertainties in long-term growth. The company continues to face challenges, including the cleanup of its classics product line and potential tariff impacts, which are expected to affect its fiscal 2026 gross margin. Despite these challenges, analysts have noted signs of potential improvement, particularly in Nike’s wholesale and running categories.
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