1 Wall Street Analyst Thinks Nike Stock Is Going to $95. Is It a Buy?

Core Viewpoint - Nike's shares are currently trading 57% below their previous peak due to weak financial performance, but some analysts see potential for a turnaround, with BMO Capital raising the price target to $95, indicating a 27% upside from the current price of $75 [1]. Financial Performance - Nike's recent quarter faced challenges with retail traffic, contributing to its weak financial performance [1]. - The company is expected to see low double-digit revenue decline year-over-year in the third quarter of fiscal 2025 [4]. - The stock is trading at 36 times this year's earnings estimate, suggesting it is not cheap despite the struggles [5]. Strategic Changes - Nike is focusing on innovation and adjusting its marketing strategy to better connect with customers as part of its efforts to improve sales [3]. - Management acknowledges that the turnaround will take time, indicating that the actions being implemented will not yield immediate results [4]. Analyst Insights - BMO Capital analyst Simeon Siegel maintains an outperform rating on Nike, with a revised price target of $95, reflecting optimism about the company's future despite current challenges [1][5]. - The consensus among analysts projects Nike's earnings to reach $3.10 in fiscal 2027, with a potential share price of $93 if trading at 30 times earnings [5]. Investor Sentiment - Investors are advised to be patient with Nike, as the turnaround plan is expected to take time to materialize [6].