Alexandra Straton, an analyst from Morgan Stanley, maintained the Hold rating on Nike (NKE – Research Report). The associated price target was lowered to $72.00.
Alexandra Straton’s rating is based on a combination of factors that suggest a cautious approach towards Nike’s stock. While there is potential for slight earnings per share (EPS) outperformance in the third quarter of 2025, the overall financial outlook remains challenging. The uncertainty surrounding Nike’s long-term growth and profitability, especially with strategic shifts underway, contributes to the Hold rating.
Additionally, there is concern about the possibility of further negative EPS revisions for fiscal year 2026, which could be another reset year for the company. Despite these challenges, the elevated valuation of Nike’s stock indicates that the market might already be factoring in some degree of turnaround success. This is balanced by optimism regarding the new CEO and the strategic initiatives being implemented, resulting in a Hold rating with a revised price target of $72.
Straton covers the Consumer Cyclical sector, focusing on stocks such as On Holding AG, Victoria’s Secret, and Abercrombie Fitch. According to TipRanks, Straton has an average return of 3.3% and a 55.35% success rate on recommended stocks.
In another report released on March 11, Barclays also maintained a Hold rating on the stock with a $70.00 price target.