Nike (NYSE:NKE) is making steady progress in its recovery and is well-positioned to sustain its leadership in the athletic apparel and footwear sectors, according to a recent analysis by Argus. The investment firm upgraded Nike’s stock rating from Hold to Buy on Tuesday, setting a price target of $85.
“We believe a recovery is underway,” Argus stated, highlighting the company’s efforts to reduce excess inventory in the second half of fiscal 2025.
“Most of the company’s products are up-to-date and attracting customers,” they added.
The report emphasized Nike’s improved pricing strategies, especially through its e-commerce channels, alongside ongoing supply chain optimizations. “Nike plans to reduce its imports from China to the high-single-digits, compared to a mid-teens level previously,” the note detailed.
While competitive challenges persist, Argus remains optimistic about Nike’s future. “We expect Nike to continue to dominate the athletic apparel and footwear markets,” the firm wrote, pointing to the brand’s strength in premium footwear supported by “marketing strength and endorsements from famous athletes.”
Argus also cited Nike’s globally recognized brand, robust product innovation, economies of scale, and expanding footprint in emerging markets as key factors underpinning a positive investment outlook. “The long-term outlook remains bright,” they said.
“Although the industry remains fiercely competitive, we expect the company to build on its dominant position,” Argus concluded.