Why Nike (NKE) Is Climbing Today

Nike (NKE) is advancing 5% after investment bank Jefferies upgraded its rating on the sneaker maker to Buy from Hold. Jefferies recommends buying the shares.

Why NKE Stock Is Rising Today

Nike can regain the market share that it has lost, Jefferies believes. That’s because the company “is tackling product and distribution issues head-on,” according to the investment bank.

Also likely to boost the company’s growth going forward are its “brand ubiquity and global distribution advantage,” Jefferies believes. Nike can grow at a compound annual growth rate of about 7%, versus analysts’ average estimate of about 3%, the investment bank believes.

Additionally, Jefferies expects the company’s new management team to “improve (Nike’s) product direction,” helping the firm’s fiscal 2027 financial results to surpass analysts’ average estimates by a significant amount.

Jefferies placed a $115 price target on the name.

More Information About Nike

Analysts on average expect the company’s earnings per share to sink to $2.06 this year from $3.73 last year. In 2026, the mean estimate calls for its EPS to rebound to 2.43.

In the last month, the shares have climbed 6%, while they are up 1% in the last three months.

While we acknowledge the potential of NKE, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NKE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.