Wells Fargo upgrades Nike to Overweight on improving visibility

Wells Fargo analyst Ike Boruchow upgraded Nike (NKE) to Overweight from Equal Weight with a price target of $75, up from $60. The firm says visibility into Nike’s sales and margins “is finally improving.” The company has been in a negative estimate revision cycle for three years, but this will reverse over the next 6-9 months, the analyst tells investors in a research note. Wells sees “material green shoots” in Nike’s innovation an believes headwinds to the business are set to dissipate. It thinks Nike has the potential to exit fiscal 2026 growing revenue at 3%-4% with gross margins expanding by 200 basis points.