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Investing.com - Truist Securities raised its price target on Nike (NYSE:NKE) to $85.00 from $73.00 on Friday, while maintaining a Buy rating on the athletic footwear and apparel giant. The stock, currently trading at $72.14 with a market cap of $106.86 billion, has analyst targets ranging from $38 to $120. According to InvestingPro, Nike maintains a GOOD financial health score.
The price target increase reflects Truist’s assessment that Nike’s turnaround efforts are yielding improvements more rapidly than anticipated by analysts and investors. The firm noted that channel inventories are being cleaned up and Holiday orderbooks are up year-over-year. Despite a 9.84% revenue decline in the last twelve months, Nike maintains strong liquidity with a current ratio of 2.21.
Truist highlighted that new products continue to gain traction in the marketplace, providing stronger visibility into a return to sales growth and margin recovery for the company. Despite these positive developments, Nike stock remains down approximately 15% from where it traded prior to the September 19, 2024 announcement that Elliott Hill would take over as CEO.
The firm pointed out this performance contrasts with the S&P 500’s 8% gain over the same period since Hill’s appointment was announced last September. This divergence suggests potential upside for Nike shares as the company’s recovery progresses.
Truist concluded that "the worst of fundamental pressures" appear to be behind Nike, and the company now has "a clear go-forward strategy" that provides "plenty of room to run" for the stock.
In other recent news, Nike’s earnings and revenue results have been a focal point for analysts. Needham raised its price target for Nike to $78.00, maintaining a Buy rating, following the company’s fourth-quarter fiscal 2025 earnings, which surpassed market expectations despite an 11% revenue decline. Similarly, Stifel maintained a Hold rating and a $64.00 price target, noting that while the revenue decline was significant, it exceeded Street expectations by $400 million. Piper Sandler also raised its price target to $80.00, citing better-than-expected sales guidance and signs of wholesale demand recovery. UBS increased its price target to $63.00, acknowledging improvements in inventory levels, although it maintained a Neutral rating due to concerns about tariffs and fundamentals. Williams Trading reiterated a Buy rating with a $73.00 price target, highlighting positive trends in Nike’s wholesale channels and expected market recovery. Analysts are noting a mix of challenges and positive indicators, such as the growth in the running category and wholesale order book increases for the holiday season. Despite these developments, concerns about tariffs and the ongoing cleanup of Nike’s classics product line remain.
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