Nike extends its rally as surprise Q1 beat raises turnaround hopes
The sneaker giant extended its rally as analysts warm up to signs that the brand’s reset may be sticking.
Nike climbed nearly 6% Wednesday, gaining steam after rising Tuesday in aftermarket trading. The gains came as investors and analysts processed the sneaker giant’s stronger-than-expected Q1 results, which topped Wall Street forecasts and delivered a surprise revenue gain.
On the company’s call with investors, management was quick to caution that the recovery won’t be linear, pointing to pressure from tariffs, discounting, and stubbornly high costs. Still, there were some clear bright spots: wholesale looked solid, North America held up well, and a refreshed product lineup seems to be resonating with shoppers.
Wall Street analysts are also lacing up for a turnaround, highlighting Nike’s cleaner inventory and early evidence that demand is stabilizing.
Piper Sandler nudged its price target on the stock up to $84 from $80 and reiterated its “overweight” (buy) rating.
TD Cowen bumped its target to $86 from $85 while sticking with a “buy” rating on the stock.
JPMorgan shifted gears, upgrading its rating from “neutral” to “overweight” (buy) and lifting its price target to $100 from $93.
Shares of Nike are down about 17% over the past 12 months.
