The shares of Nike Inc (NYSE: NKE) rose almost 5% on Monday, after Jefferies upgraded the stock to “Buy” from “Hold”, as it cited a strong margin and earnings recovery opportunity.
The Jefferies team forecasts fiscal 2027 earnings of $3.50 per share.
”Nike’s brand ubiquity and global distribution advantage should allow it to outgrow the market – we project a ~7% CAGR vs ~3% for the street,” Jefferies analyst Randal Konik wrote in a note to clients.
”After a few years of challenges and self-inflicted wounds, we believe new leadership will improve product direction and re-establish balance between [direct-to-consumer] and wholesale. With shares near a valuation trough, we believe now is the right time to aggressively buy shares seeing more than 50% upside from current levels,” Konik added.
Jefferies also revised up its 12-month price target on Nike to $115 per share from $75.
Stock Performance
The shares of Nike Inc (NKE) closed 4.94% ($3.78) higher at $80.28 in New York on Monday. It has been the highest closing price for the stock since October 22nd 2024.
The company’s total market cap now stands at $118.745 billion.
The shares of Nike Inc (NKE) went down 30.30% in 2024, compared with a 23.30% gain for the benchmark index, S&P 500 (SPX).
The company’s shares have risen 6.09% so far this year.
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