TD Cowen analyst John Kernan maintained a Buy rating on Nike yesterday and set a price target of $86.00.
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John Kernan has given his Buy rating due to a combination of factors including Nike’s return to revenue growth in North America and EMEA, which has exceeded expectations and contributed to a strong earnings performance. The company’s management has expressed confidence in their strategy, particularly in the Running category and inventory management, which are seen as sustainable improvements.
Despite some temporary challenges such as incremental tariffs and a cautious outlook for the China segment, Kernan believes that Nike’s transformation efforts are progressing well. The company’s focus on innovation in footwear and apparel, along with a potential margin recovery, are key reasons for the positive outlook. Additionally, there is optimism about future catalysts such as digital traffic and retail partner results, which could further support Nike’s turnaround story.
In another report released on September 29, Jefferies also maintained a Buy rating on the stock with a $115.00 price target.