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Nike (NKE), the world leader in athletic footwear and apparel, is set to report third-quarter fiscal 2025 earnings on Thursday. While the company has struggled in recent quarters due to supply chain disruptions and inflationary pressures, management’s focus on operational efficiencies and new strategic initiatives may help it recover as its brand strength still remains intact. Furthermore, the management of sportswear and footwear retailer Foot Locker (FL) has expressed confidence in its partnership with Nike, citing its positive impact on the company’s performance in the fourth quarter of 2024.
Nike stock is down 2.9% year-to-date. However, Jefferies analysts recommend buying the stock “aggressively” because they believe it is poised for a comeback. Jefferies upgraded the stock to “Buy” and raised the price target to $115. This new target price exceeds Wall Street's average target price of near $85 and represents upside potential of more than 50%.
