Clothing brand Nike (NKE) will report its Q1 results for FY26 on September 30, with Wall Street looking for EPS of $0.27 on revenues of $10.98 billion. Ahead of the results, RBC Capital Markets analyst Piral Dadhania upgraded Nike to Buy from Neutral and raised the price target to $90 from $76. He said Nike’s sales should recover more quickly than many on Wall Street expect, helped by new products and the commercial lift from the FIFA World Cup.
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Analyst Expects Stronger Recovery Ahead
Dadhania believes Nike’s sales decline has already hit bottom in FY25. He expects growth to turn positive by the third quarter of FY26. The 2026 World Cup could add about $1.3 billion in sales, with Nike supplying kits for major teams like the U.S., England, and Brazil.
He also said Nike’s weak performance compared to fast-growing rivals like On Holding (ONON) and Hoka, owned by Deckers Outdoor (DECK), has likely reached its lowest point. As those rivals’ growth slows and Nike’s new products hit shelves, he expects Nike to start closing the gap, which could lift investor confidence.
Marketing and New Products Take the Lead
The analyst pointed to Nike’s marketing budget of $4.9 billion for FY26, almost twice that of Adidas (ADDYY). He said this spending will increase Nike’s visibility worldwide, especially under new Chief Marketing Officer Nicole Graham.
Dadhania noted that Nike has already refreshed key shoes like Pegasus, Vomero, and Structure, and will release 26 new running products by late 2026.
Looking ahead, RBC raised its FY26 revenue and EPS estimates by 2% and 7%.
Is Nike Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on Nike stock based on 19 Buys, 11 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average Nike price target of $81.73 per share implies 13.03% upside potential.
