Jefferies upgraded NKE to "buy" and hiked its price target by $40
Nike Inc (NYSE:NKE) stock is 2.4% higher at $78.30 before the opening bell following a bull note at Jefferies. The analyst upgraded Nike to "buy" from "hold" and lifted its price target from $75 to $115, citing its turnaround efforts.
According to the brokerage, this move reflects Nike's renewed focus on its core strengths as it is "turning back on its innovation engine." The note highlights that the apparel retailer can now rebalance inventories, enhance its wholesale distribution, and drive stronger sales and profits -- even as current market expectations remain low -- potentially echoing a successful playbook from a decade ago.
Nike stock has struggled to gain momentum this year, up just 1.1% year-to-date. The $78 level recently acted as resistance, stalling a rebound from its nearly five-year low of $68.62 on Feb. 7. However, with today's pre-market move, the stock is set to open at its highest level since mid-December, cutting into its substantial 27.2% year-over-year decline.
Given this weak technical setup, it’s understandable why analysts remain cautious. Of the 33 brokerages covering NKE, 17 currently rate it a "hold" or worse. However, if the stock sees a sustained reversal in price action, it could force analysts to reassess their stance, potentially providing additional tailwinds for the shares.