JPMorgan's Matt Boss talks his bull case for Nike

Nike's Performance and Future Outlook - Analyst upgrades Nike to overweight with a $93 price target, citing improved inventory and sales balance [1] - Expects potential for over 500 basis points (5%) of operating margin expansion through 2028 [1] - Nike's stock has increased by more than 20% since April lows and is up about 4% for the year [1] - Numbers have troughed, marking the first time in 15 months with raised figures within the Nike model [3] - Holiday order book is the first to tick positive, lapping the main part of franchise management [4] - By the end of Q2, inventories globally are expected to be clean, ramping performance with less fashion risk, triggering gross margin opportunity [4] - Model embeds 500 basis points (5%) of margin opportunity, but the stock is valued off a 5% margin trough [5] - A 700 to 800 basis point (7%-8%) margin recovery is anticipated just to return to pre-pandemic steady-state margin profile [5] - Projects 5 years of 20% plus earnings growth for Nike [8] Competitive Landscape - Retail landscape remains highly competitive [6][7] - No competitor matches Nike's size, scale, vendor relationships, geographic reach, or athlete endorsement power [7]