Truist maintains Nike stock buy rating amid strong shoe sales

On Thursday, Truist Securities maintained its buy rating on Nike (NYSE:NKE) stock, citing the company’s success with its latest men’s running shoes. With a market capitalization of $91.3 billion and trading at $61.86, Nike shares have experienced a notable 20.77% decline over the past six months. Truist’s analysis highlighted that three of Nike’s running shoe models have ranked among the top five in the market, signaling a positive consumer response to the brand’s recent launches. According to InvestingPro data, Nike maintains a strong financial health score, though analysts anticipate an 11% revenue decline for the current fiscal year.

According to Truist, Nike’s performance at Dick’s Sporting Goods (NYSE:DKS) has been particularly strong, with notable sellout trends. Additionally, the company has seen growth in the run specialty channel. Fleet Feet, a retail chain, introduced an exclusive colorway for two of Nike’s models, the Vomero 18 and Pegasus Premium, on May 22, 2025, as part of Nike’s After Dark Tour. Want deeper insights? InvestingPro offers exclusive access to 12+ additional key metrics and ProTips about Nike’s financial health and market position.

The Vomero 18 has shown a balanced appeal, initially gaining traction with male consumers but recently seeing increased popularity among female shoppers. In Truist’s DKS best seller rankings, the Vomero 18 is listed as the sixth most popular women’s running shoe and the fourth for men’s, despite a slight dip in trends over the past weeks.

The Pegasus Premium continues to perform well, particularly with male consumers, as Nike expands the distribution of the $210 shoe. With a range of new colorways introduced by DKS in recent weeks, the Pegasus Premium has climbed to the third spot in the men’s running shoe category and to the nineteenth for women’s.

Truist’s commentary underscores the strategic moves by Nike to bolster its presence in the running shoe segment, which appears to be paying off with strong sales and consumer interest in both men’s and women’s categories. Trading at a P/E ratio of 20.51x, Nike shows mixed signals in its valuation metrics. For comprehensive analysis of Nike’s market position and future potential, including detailed Fair Value estimates and growth projections, check out the full research report available on InvestingPro.

In other recent news, Deckers Outdoor (NYSE:DECK) Corporation reported earnings per share for the fourth fiscal quarter of 2025 that exceeded expectations, driven by higher-than-anticipated revenue and gross margin percentage. The UGG brand outperformed revenue forecasts, while the HOKA brand saw a 10% growth, which was below analysts’ expectations. Raymond (NSE:RYMD) James has adjusted its financial outlook for Deckers Outdoor, reducing the price target from $150 to $140, while maintaining a Strong Buy rating. The firm noted the company’s conservative estimates for revenue and margins and suggested potential for an accelerated share buyback program.

Meanwhile, Amazon (NASDAQ:AMZN) is set to resume direct sales of Nike products, marking a significant development for the e-commerce giant. Nike had previously ceased sales on Amazon in 2019 due to concerns over counterfeit merchandise and unauthorized sellers. This week, Amazon informed independent merchants that it will prohibit them from selling certain Nike products as it collaborates directly with Nike.

Additionally, Nike is preparing to increase prices on a wide range of products, including adult apparel and equipment, with price hikes ranging from $2 to $10. RBC Capital Markets has also revised its outlook on Nike, reducing the stock price target to $65 from $66, while maintaining a Sector Perform rating. The firm cited Nike’s efforts to manage excess inventory and recent changes in the Senior Leadership Team as factors in their assessment. Nike is also reducing its technology division, shifting work to third-party vendors as part of ongoing organizational changes led by CEO Elliott Hill.

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