Barclays analyst Adrienne Yih has maintained their bullish stance on NKE stock, giving a Buy rating yesterday.
Adrienne Yih’s rating is based on the analysis of Nike’s strategic approaches and financial outlook. Despite the increased uncertainty in Nike’s turnaround, due to ongoing promotional pressures and slower-than-expected recovery in merchandise margins, Yih maintains an optimistic view. The expectation that cost control measures will bolster margins, particularly in selling, general, and administrative expenses (SG&A), contributes to the Buy rating. Moreover, although there is a tempering of near-term sales growth projections, the analyst foresees a margin expansion from these cost-efficiency efforts, which underpins the recommendation.
Additionally, Yih has factored in a reduction in earnings per share (EPS) estimates for fiscal years 2025 and 2026, aligning them slightly below the prior consensus. Despite lowering the price target from $142 to $114, which reflects a new forward price-to-earnings (P/E) valuation multiple, Yih’s outlook remains overweight based on the potential for Nike’s shares to stabilize. The belief is that the current stock price already accounts for much of the risk associated with the promotional environment and that the upcoming selling seasons could still offer upside potential, thereby justifying the Buy rating.
In another report released yesterday, Bernstein also assigned a Buy rating to the stock with a $120.00 price target.
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Nike (NKE) Company Description:
NIKE, Inc. is a maker of athletic footwear, apparel, accessories and equipment. It also sells athletic lifestyle sneakers, apparel and accessories under the Converse line. The company was founded by William Jay Bowerman and Philip H. Knight in 1964 and is headquartered in Beaverton, OR.
