Wall Street backs Nike’s business recovery despite near-term challenges.
- BTIG said Nike's selloff has become excessive and believes restructuring efforts to boost margins and cash flow.
- Jefferies highlighted progress in performance products but sees continued weakness in sportswear and Jordan.
- Bernstein expects near-term revenue pressure but sees a stronger recovery by the 2027 calendar year.
Nike, Inc. (NKE) is heading for a weekly gain as the sportswear giant continues to receive support from several Wall Street firms despite a sharp decline in its stock price this year, with analysts arguing that investor pessimism may have become excessive even as the company works through near-term challenges.
Analysts See Turnaround Taking Shape As Nike Resets Business
Following Nike's cautious outlook alongside its fiscal fourth-quarter (Q4) results, multiple firms reaffirmed positive ratings with up to 74% upside while trimming their price targets.
Analysts believe Nike's ongoing restructuring efforts are laying the foundation for stronger profitability and cash generation over time.
BTIG said the roughly 32% drop in Nike shares since the start of the year has created an overly negative market view. The firm maintained its ‘Buy’ rating and a $55 price target, citing progress made during fiscal 2026 and expressing confidence that management's initiatives will improve EBIT margins and strengthen cash flow in the coming quarters.
Jefferies lowered its price target from $90 to $75 but kept its Buy rating, noting that Nike is showing signs of improvement in China and that its performance products continue to grow.
However, Jefferies pointed out that sportswear and Jordan streetwear remain weaker areas that will require additional time to recover, prompting lower earnings estimates for fiscal 2027 and 2028.
Bernstein also trimmed its price target, lowering it to $72 from $80 while maintaining an ‘Outperform’ rating. The firm expects revenue to remain under pressure during fiscal 2027 as Nike limits promotional activity and reduces sales of lower-quality products.
Even so, Bernstein believes stronger product innovation, disciplined cost controls, improved full-price selling, and healthier margins could support a more meaningful recovery by calendar 2027. The firm identified Nike's investor day in November as the next major event for shareholders.
Nike stock edged 0.05% lower overnight, heading into Thursday.
What Are Nike Retail Traders Saying
On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory. The stock saw a 285% increase in message volume over the past week, with a 0.6% gain in watchers.
Some retail traders expressed optimism that the U.S. national team's latest FIFA World Cup win could boost Nike's brand visibility and demand for soccer-related merchandise.
A user said, “France, Brazil, England, Canada, USA, Norway! All NIKE (we're waiting for Croatia and Australia)!!! Thousands of hours of TV, SOCIAL MEDIA advertising for FREE! Positioning the brand where it deserves to be! Nike boots are on every national team!,” and added that the stock is worth three figures with a fiar price above $200.
Another user said, “Obscenely popular World Cup so far. This type of energy directly translates into sales for Nike.”
A third user expressed optimism, saying the company is well positioned for future growth.
NKE stock has cratered 43% in the last 12 months.
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