UBS Reaffirms Neutral View on Nike Despite Improving Brand Indicators

Core Viewpoint - UBS maintains a Neutral rating and a $62 price target on Nike Inc., highlighting improving brand momentum but a longer-than-expected turnaround timeline [1] Group 1: Brand Strength and Consumer Perception - Results from UBS Evidence Lab's 11th global sportswear survey indicate year-over-year improvement in Nike's brand strength, reinforcing confidence in the brand's potential for recovery [2] - A higher proportion of consumers reported that Nike products are easy to find both in stores and online, reversing previous declines and reaching a new peak in the latest survey [3] - Nike's renewed focus on sports has resonated with consumers, with the percentage viewing the brand as "good for doing sports" returning to 2019 peak levels, supporting long-term brand equity [4] Group 2: Operational and Financial Outlook - Despite positive survey results, UBS argues that operational and financial improvements for Nike are likely to take longer than current market expectations [2]