Nike recovery underway, analyst expects company to continue to dominate long-term
Investing.com -- Nike is on the path to recovery and poised to maintain its leadership in athletic apparel and footwear, according to a new note from Argus.
The firm upgraded the stock to Buy from Hold in a note to clients on Tuesday, setting a price target of $85.
“We believe a recovery is underway,” said the firm, citing the company’s efforts to clear excess inventory in the second half of fiscal 2025.
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Learn More Powered by Money.com - Yahoo may earn commission from the links above.“Most of the company’s products are up-to-date and attracting customers,” they added.
Argus highlighted Nike’s improved pricing strategy through its e-commerce channel and noted ongoing supply chain adjustments.
“Nike plans to reduce its imports from China to the high-single-digits, compared to a mid-teens level previously,” the report stated.
Despite competitive pressures, the long-term view remains bullish. “We expect Nike (NYSE:NKE) to continue to dominate the athletic apparel and footwear markets,” Argus wrote.
The firm pointed to Nike’s strong positioning in premium footwear, supported by “marketing strength and endorsements from famous athletes.”
According to Argus, Nike’s globally recognized brand, innovative product pipeline, economies of scale, and growing presence in emerging markets all support a positive investment case. “The long-term outlook remains bright,” said the firm.
“Although the industry remains fiercely competitive, we expect the company to build on its dominant position,” concluded Argus.
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