Piper Sandler upgrades Nike, says a path to recovery is emerging

Nike could soon improve its fortunes, according to Piper Sandler. The investment firm upgraded shares of the athletic footwear and clothing retailer to overweight from neutral. Piper accompanied the move by lifting its price target to $90 from $72, implying upside of 26%. Shares of Nike are already down 6% on the year, after ending 2024 with a 30% decline. Analyst Anna Andreeva said this negative sentiment, however, could soon flip amid CEO Elliott Hill's intensified efforts to turn Nike around. NKE 1Y mountain NKE 1Y chart Indeed, Nike's return to healthy and profitable growth is likely just three to four quarters away, Andreeva estimated. "The combination of product innovation, strong marketing, franchise/portfolio management, and inventory actions lays out a path for NKE to a return to healthy, profitable sales growth by F3Q26," the analyst wrote. Notably, this is ahead of the 2026 FIFA World Cup, which will be held throughout North American cities in June and July of 2025. Adding to this thesis is Nike's demonstrated track record of successfully righting the ship in the past, following it losing ground in North America footwear in the early part of 2018. "After three quarters of sales pressure, footwear rebounded by the end of FY18, as NKE was able to come up with innovation at scale, first with the Air franchise followed by the Epic React launch," Andreeva wrote. "While no doubt the marketplace is more competitive now with On Running, HOKA, New Balance, & Asics all sizable businesses with substantial momentum and mind share gained, in the past, when NKE executes, the brand has been able to expand the entire marketplace." Analyst sentiment is mixed on Nike. Of the 42 analysts who cover the stock, 21 rate it a strong buy or buy, according to LSEG. Another 21 have a hold or underperform rating. The average analyst price target, however, implies upside of 22%.