Shares of apparel giant Nike (NKE) jumped on Monday after J.P. Morgan’s four-star-rated analyst Matthew Boss upgraded the stock from Hold to Buy. He also raised his price target to $93, suggesting over 18% upside from current levels. Overall, the firm cited signs of recovery in Nike’s inventory levels, improving retail demand, and strengthening profit margins as key reasons for the upgrade. Consequently, NKE stock gained almost 3% as of this writing.
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JP Morgan Raises Forecasts
The upgrade comes after discussions with Nike’s leadership and an analysis of its latest annual regulatory report.
According to Boss, margins, previously hurt by heavy discounts and extra inventory, are expected to slowly improve. He now expects Nike’s operating margin to increase to 10% by fiscal 2028, up from an estimated 5.3% in fiscal 2026. The firm also raised its earnings estimate for fiscal 2026 to $1.32 per share, up from $1.07, although that’s still below the average analyst estimate of $1.62.
JP Morgan Sees Revenue Growth
J.P. Morgan believes Nike is approaching a turning point, with revenue growth likely to pick up in the second half of fiscal 2026 and into fiscal 2027. This comes after facing several quarters of challenges related to managing product cycles and clearing excess inventory.
According to J.P. Morgan, this reset could support stronger year-over-year revenue comparisons. Additionally, retailers, particularly in North America and Europe, are increasing orders for upcoming seasons, pointing to a potential rebound in demand. Meanwhile, Nike has introduced new products in its running and basketball segments, and early signs show growing shopper interest.
Is Nike a Good Stock to Buy Today?
According to TipRanks, NKE stock has received a Moderate Buy consensus rating, with 16 Buys and 14 Holds assigned in the last three months. The average Nike stock price target is $77.30, which is 0.50% below the current level.
