Jefferies Upgrades Nike, Highlights NikeSKIMS Launch

Jefferies has upgraded Nike's stock from 'hold' to 'buy', citing a strong potential for a V-shaped recovery in earnings under the leadership of new CEO Elliott Hill. The investment firm raised Nike's price target to $115, suggesting a significant upside of over 50% from recent prices. Hill's strategy focuses on rebuilding wholesale partnerships and enhancing product innovation, which had lagged due to an earlier emphasis on digital sales, leading to a loss in market share. Jefferies highlighted Nike's strong brand presence and the launch of the new NikeSKIMS line as factors contributing to its optimistic outlook. The company's shares have responded positively, becoming a top performer in the S&P 500 with a notable increase in stock value. Analysts anticipate Nike's market share to stabilize and project a 20% upside in earnings estimates by fiscal 2027.