Nike’s Financial Outlook: Balancing Marketplace Challenges and Early Signs of Improvement

Wells Fargo analyst Ike Boruchow maintained a Hold rating on Nike (NKE – Research Report) today and set a price target of $60.00.

Ike Boruchow has given his Hold rating due to a combination of factors impacting Nike’s financial outlook. One of the primary concerns is the ongoing marketplace cleanup, which is expected to continue affecting Nike’s performance through the first half of fiscal year 2026. This includes challenges in key franchises and the need for significant reinvestment, which may not yield immediate positive results. Additionally, the situation in China remains a significant concern, with headwinds anticipated to persist longer than in other regions, compounded by increasing competition from local players.
Despite some positive developments, such as improvements in feedback from wholesale partners and early signs of innovation, these are still in nascent stages and not yet substantial enough to drive a strong positive outlook. The resale market for Nike products has shown signs of stabilization, but “brand heat” metrics remain weak, making it difficult to predict a robust recovery. As a result, Boruchow’s cautious stance reflects the balance between these challenges and the early signs of potential improvement.

In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $61.00 price target.