Analyst Aneesha Sherman of Bernstein maintained a Buy rating on Nike (NKE – Research Report), reducing the price target to $95.00.
Aneesha Sherman has given her Buy rating due to a combination of factors that highlight Nike’s potential for future growth despite current challenges. The company is currently dealing with inventory clearance issues, which are expected to continue for another few quarters. However, management has indicated that the fourth quarter will be the lowest point, with gradual improvements in year-over-year growth and margins anticipated through fiscal year 2026.
Although the first half of 2026 may see modest declines, the second half is expected to experience growth as inventory levels stabilize and new product lines gain traction. The management’s strategy to aggressively clear inventory, particularly in the Classics footwear segment, is aimed at setting the stage for future growth. While short-term progress may be limited, the long-term recovery story remains compelling, leading to the Buy rating despite the current mixed results.
According to TipRanks, Sherman is a 4-star analyst with an average return of 5.5% and a 47.86% success rate. Sherman covers the Consumer Cyclical sector, focusing on stocks such as Nike, On Holding AG, and Lululemon Athletica.
In another report released on March 18, Bank of America Securities also reiterated a Buy rating on the stock with a $90.00 price target.