BTIG analyst Robert Drbul has maintained their bullish stance on NKE stock, giving a Buy rating today.
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Robert Drbul has given his Buy rating due to a combination of factors that highlight Nike’s improving fundamentals and earnings power. He points to the company’s strong earnings beat in the quarter, where profit and revenue both exceeded his expectations, supported by disciplined expense management and a healthier growth profile in key categories like running and North American wholesale. Excluding the deliberate pullback in classics, underlying constant-currency sales are growing at a solid pace, and order books for upcoming seasons, particularly in wholesale and performance categories, are showing renewed strength. While China remains a drag with weaker sales, margin pressure, and inventory issues, management is actively restructuring the business there with the aim of reigniting growth over time, even if the exact timing is uncertain.
Drbul also emphasizes that Nike is making progress in cleaning up inventories, especially in North America and EMEA, which supports a more profitable and sustainable growth trajectory going forward. He notes that although gross margins are under pressure from tariffs and mix, the impact is understood, and the company is moving closer to a recovery in profitability as these headwinds are absorbed. The upcoming 2026 World Cup provides an additional catalyst, with strong demand signals from wholesale partners and significantly higher bookings compared with the last tournament. Based on these dynamics and his view that current earnings represent a cyclical low, he justifies a premium valuation multiple and a $100 price target, underpinning his Buy recommendation on the shares.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $75.00 price target.
NKE’s price has also changed moderately for the past six months – from $59.510 to $65.630, which is a 10.28% increase.