Optimistic Long-Term Outlook for Nike Amidst Short-Term Challenges

Analyst Tom Nikic from Needham maintained a Buy rating on Nike (NKE – Research Report) and decreased the price target to $66.00 from $75.00.

Tom Nikic has given his Buy rating due to a combination of factors, despite some near-term challenges that Nike is facing. He acknowledges that Nike is undergoing a leadership and strategic shift, which is expected to positively impact the company’s performance in the long run. However, he notes that the current market conditions are not entirely favorable, with issues such as oversupplied product lines and lukewarm brand perception.
Despite these hurdles, Nikic sees potential for modest earnings per share growth in the near term, driven by Nike’s typically conservative guidance. He has adjusted his earnings forecasts for the upcoming fiscal years, lowering them below the current market expectations. Nonetheless, his long-term outlook remains optimistic, as he anticipates that the strategic changes will eventually lead to a turnaround for Nike.

According to TipRanks, Nikic is a 4-star analyst with an average return of 7.0% and a 43.59% success rate. Nikic covers the Consumer Cyclical sector, focusing on stocks such as Foot Locker, On Holding AG, and Crocs.

In another report released yesterday, Piper Sandler also maintained a Buy rating on the stock with a $70.00 price target.