Nike (NKE) stock was up 1.9% on Thursday, as of writing, after Wells Fargo upgraded its rating for the athletic apparel and footwear maker to Buy from Hold and raised the price target to $75 from $60. Wells Fargo analyst Ike Boruchow cited improving visibility into the company’s sales and margins as the reason for his rating upgrade.
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Wells Fargo Turns Bullish on Nike Stock
Boruchow noted that Nike has been in a “negative revision cycle” for more than three years, and he expects this trend to reverse over the next 6-9 months. He raised his Fiscal 2026 and 2027 earnings per share (EPS) estimates to $1.70 and $2.40, respectively. In fact, with stronger revenue drivers (stabilizing Classics business and growth in non-Classics) and margin recovery (better pricing and lower liquidation costs), the 4-star analyst sees the possibility (Bull case estimate) of the company delivering EPS of about $2.00 in Fiscal 2026 and $3.00 in Fiscal 2027.
Furthermore, Boruchow added that for the first time in years, he is seeing several positive changes for Nike, including better visibility into its new strategies, clear signs of product innovation, and easing pressure in the Classics business. This gives Boruchow confidence to outline realistic “return-to-growth” projections, with Nike likely to exit FY26 growing revenue by 3% to 4% and expanding gross margins by about 200 basis points.
Additionally, Boruchow contends that pressure from Nike’s Classics line (includes Air Force 1 and Air Jordan 1) has likely peaked. He expects revenue from the Classics line to fall to about $9 billion in Fiscal 2026 from about $11.5 billion in Fiscal 2025. Meanwhile, Boruchow noted that non-Classics footwear revenue grew over 20% in Q1 FY26 while the rest of the business, led by apparel, was up by mid-single digits.
Is NKE Stock a Buy, Sell, or Hold?
Currently, Wall Street has a Moderate Buy consensus rating on Nike stock based on 19 Buys and nine Holds. The average NKE stock price target of $86.16 indicates 31.6% upside potential from current levels. NKE shares are down 13.4% year-to-date.
