Nike Stock Surges as Analysts Back CEO's Turnaround Strategy

Jefferies upgrades Nike to a 'buy,' citing renewed focus on wholesale partnerships, product innovation, and a promising new women's activewear line.

Nike shares rose nearly 5% following a Jefferies report upgrading the stock to a 'buy' with a price target of $115, reflecting a potential 43% upside.
CEO Elliott Hill's strategy prioritizes rebuilding wholesale partnerships and driving product innovation, addressing past missteps in distribution and digital sales focus.
The launch of NikeSkims, a women's activewear collaboration with Kim Kardashian's SKIMS, is expected to drive revenue growth and expand Nike's presence in the female market.
Analysts predict a V-shaped recovery in profit margins and earnings by 2027, with Nike's brand strength remaining a key competitive advantage despite recent challenges.
Nike's stock performance has been bolstered by increased investor confidence, including moves by Pershing Square Holdings to convert equity positions into call options.