Nike jumps after JPMorgan upgrade and price target hike
After a messy stretch, analysts say the sneaker retailer could be finally lacing up for a rebound.
Nike shares were up nearly 3% Monday morning, helping lead S&P 500 gains, after JPMorgan upgraded the stock to “overweight” (or “buy”) from “neutral” as the swoosh comes back in style.
The firm also raised its price target for the stock to $93 from $64 by December 2026, saying the retailer is finding its footing again after months of soft sales and heavy discounting.
Nike expects to get inventory back in sync with demand by the end of fiscal Q2 2026, after taking $500 million in charges to clear out unsold merchandise in the back half of this year. That cleanup could help set up easier revenue comparisons next year, JPMorgan said.
Wholesale retailers are also starting to place more orders, especially in key markets like North America and Europe, a potential sign that demand is picking up. Meanwhile, new running and basketball sneaker drops are also starting to gain popularity.
Nike’s margins, which have been hit hard by heavy promos and inventory buildup, are expected to recover slowly. JPMorgan now sees operating margin climbing to 10% by 2028, nearly double the estimated 5.3% expected for fiscal 2026. JPMorgan also lifted its full-year 2026 earnings estimate to $1.32 a share, but still below the Street’s $1.62 forecast.
Last month, Nike shares jumped double digits after the retailer topped Wall Street’s earnings expectations, citing a better-than-expected sales outlook and less margin pressure from tariffs.
Nike shares are now up nearly 7% year to date.
