In a report released today, Tom Nikic from Needham maintained a Buy rating on Nike, with a price target of $68.00.
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Tom Nikic has given his Buy rating due to a combination of factors that, despite near‑term challenges, support a constructive long‑term view on Nike. He acknowledges that the company’s turnaround is progressing more slowly than expected and that issues predating the current CEO were more entrenched than initially believed, which has led him to cut earnings forecasts and reduce his price target. Even so, he views management’s strategic priorities—such as refocusing on core sport performance and rebuilding wholesale partnerships—as the right levers to restore growth and profitability over time.
At the same time, recent quarterly results offer some support for his stance: while sales merely met subdued expectations, profitability was stronger than the market anticipated, with earnings per share materially exceeding consensus. Looking ahead, management’s guidance for modest revenue declines in the upcoming quarter is already reflected in his lower estimates, but he still expects earnings to expand in fiscal 2026 and 2027 from current levels. With the stock trading meaningfully below his revised target price, Nikic sees an attractive risk‑reward profile and believes patient investors can benefit as the “Win Now” plan gradually translates into better financial performance.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $73.00 price target.