Nike (NKE) was trading up 3.3% on Monday after a five-star analyst, John Staszak from Argus Research, upgraded the stock’s rating to Buy from Hold, with a price target of $85 (15.8% upside). The analyst’s move reflects optimism about the athletic giant’s turnaround efforts and long-term strength.
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Key Factors Behind Upgrade
Staszak noted that Nike has made solid progress in clearing excess inventory during the second half of Fiscal 2025. With shelves now stocked with newer, more appealing products, the brand is starting to win back customers. He also highlighted Nike’s e-commerce strategy, which is helping the company improve pricing and margins.
Moreover, the analyst believes NKE can maintain its dominance despite fierce competition in the athletic wear space. The analyst cited the company’s strong brand power, innovative product pipeline, and celebrity athlete promotions as key positive factors.
Looking ahead, Staszak said that Nike’s global scale and growing presence in emerging markets could fuel further growth.
Upgrade Follows NKE’s Q4 Results
The rating upgrade follows Nike’s upbeat Q4 earnings, released on June 26. Investors were encouraged by the company’s efforts to spark growth through new products and stronger brand connection, especially in performance gear.
Further, CEO Elliott Hill highlighted momentum behind Nike’s “Win Now” strategy, which focuses on fresh designs, rebuilding ties with retailers, and driving innovation to win back customers.
Is Nike Stock a Buy, Sell, or Hold?
Overall, Wall Street is cautiously optimistic about Nike’s prospects. It has a Moderate Buy consensus rating based on 16 Buy and 13 Hold recommendations. The analysts’ average price target on NKE stock is $76.38, implying a 4.27% upside potential from current levels.
