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Nike (NYSE:NKE) received an upgrade from Jefferies analyst Randal Konik, who raised the stock to Buy from Hold and increased the price target by 53%, citing the company's resilience and strong brand presence despite past missteps.
Konik highlighted CEO Elliott Hill's focus on addressing product and distribution challenges, positioning Nike to regain lost market share and drive a V-shaped margin and earnings recovery by FY27, ahead of current consensus estimates.
According to GlobalData, the athletic footwear and apparel market is projected to grow at a 3% and 4% compound annual growth rate (CAGR) through 2028, supported by long-term consumer trends favoring comfort-driven apparel. However, Konik expects Nike to outpace the market with a ~7% CAGR versus the ~3% industry average.
With more than 50% of potential buyers still choosing Nike for athletic footwear, Konik believes new leadership will strengthen product direction and restore balance between direct-to-consumer and wholesale strategies.
This article first appeared on GuruFocus.