Core Viewpoint - Morgan Stanley has upgraded Nike's stock rating from "Neutral" to "Overweight" and raised the target price from $64 to $93, driven by optimistic expectations regarding the company's recovery and the upcoming World Cup in North America in 2026 [1][2]. Group 1: Stock Performance - Nike's stock rose by 3.89% on Monday, closing at $79.24, marking the highest closing price since late February [2][4]. - Since the announcement of the fourth-quarter results on June 26, the stock has increased by over 25%, and it has surged 47.1% from an eight-year low reached on April 8 [2][4]. Group 2: Future Growth Expectations - Analyst Matthew Boss anticipates a "five-fold multi-year recovery path" for Nike, projecting earnings per share growth of high teens to 20% over the next five years [2][4]. - The 2026 World Cup is expected to act as a sales catalyst, with plans to expand performance product lines, particularly in running and global footwear [4][5]. Group 3: Profitability and Inventory Management - Boss predicts that Nike's operating profit margin will recover by approximately 5 percentage points between 2026 and 2028, reaching a level above the anticipated 5.3% for the fiscal year 2026 [5]. - There is potential for an additional 2% to 3% increase in profit margins post-2028, aiming to return to pre-pandemic levels of 12% to 13% [5]. - The management views inventory growth relative to sales growth as a key performance indicator for assessing global inventory health [5].