Nike Upgraded: Analyst Optimistic Despite Lengthy Process And Competitive Challenges

Truist Securities analyst Joseph Civello upgraded Nike, Inc. (NYSE:NKE) to Buy from Hold and raised the price target to $97 from $83.

The analyst writes that while he still sees the turnaround process as lengthy and uncertain, he is more optimistic about the stock as investor expectations now seem more realistic.

In particular, the analyst attributes Nike’s recent struggles to its heavy focus on DTC growth since 2020, which has stifled innovation and caused customer fatigue with key products, making its current franchise management strategy necessary.

Exiting retail partnerships also resulted in share losses to competitors like ONON and HOKA, which will be difficult to regain, adds the analyst.

With experienced company ...