Analyst Lorraine Hutchinson from Bank of America Securities reiterated a Buy rating on Nike (NKE – Research Report) and decreased the price target to $80.00 from $90.00.
Lorraine Hutchinson’s rating is based on several key considerations. Despite Nike’s recent underperformance relative to the S&P 500, Hutchinson believes that the company’s challenges, such as tariffs and weakening demand in China, are already reflected in its current stock price. She suggests that the tariff pressures are manageable, given Nike’s diversified supply chain, and that the company can offset these pressures through modest global price increases.
Furthermore, Hutchinson anticipates that Nike’s ongoing efforts to clean up inventory will enable the company to scale its innovations effectively, leading to a positive sales trajectory. Although China presents some risks, it remains a vital region for Nike’s earnings. Hutchinson’s analysis suggests that even with potential declines in China sales, the impact on earnings would not justify the current stock price movement, supporting her Buy rating.
In another report released on April 23, DBS also upgraded the stock to a Buy with a $115.00 price target.