Nike upgraded to Buy from Hold at HSBC

HSBC upgraded Nike (NKE) to Buy from Hold with a price target of $80, up from $60, following the fiscal Q4 report. There is now “more than tangible evidence” that Nike has a path to see its sales rebound in the “not-too-distant future,” the analyst tells investors in a research note. The firm believes the company’ margins will be “repaired” despite an unfavorable tariff headwind. After two quarters of inventory clean-up, the bulk of Nike’s brand assortment “should be current and exciting,” HSBC contends. Separately, the firm likes that the new management team “is not cutting corners and is committed to quality.”