Nike Named Top Sector Pick for 2026 by Jefferies Amid Turnaround Strategy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: CNBC
- Nike Sector Selection: Jefferies has named Nike a top sector pick for 2026, with analysts expressing confidence in management's turnaround strategy, indicating that sales have bottomed out and showcasing the brand's broad appeal.
- Inventory Management Advantage: Jefferies highlights that next year's sector winners will be those with robust inventory management and flexible supply chains, as Nike works to eliminate excess inventory and address tariff issues, thereby supporting margin recovery and reducing discount risks.
- Earnings Forecast Adjustment: Despite Nike's earnings beat last week, analysts have lowered the price target to $75 due to weakness in the Chinese market and disappointing guidance, reflecting a cautious outlook on future performance.
- Market Trend Confidence: While challenges persist in the Chinese market, Jim Cramer remains optimistic about Nike's potential growth, noting that North America is on track for sustainable profit growth, encouraging investors to buy during the stock's decline.
NKE
$57.34+Infinity%1D
Analyst Views on NKE
Wall Street analysts forecast NKE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NKE is 85.60 USD with a low forecast of 68.00 USD and a high forecast of 120.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
28 Analyst Rating
19 Buy
9 Hold
0 Sell
Moderate Buy
Current: 57.220
Low
68.00
Averages
85.60
High
120.00
Current: 57.220
Low
68.00
Averages
85.60
High
120.00
About NKE
NIKE, Inc. is engaged in the designing, marketing and distributing of athletic footwear, apparel, equipment and accessories and services for sports and fitness activities. The Company's operating segments include North America; Europe, Middle East & Africa (EMEA); Greater China; and Asia Pacific & Latin America (APLA). It sells a line of equipment and accessories under the NIKE Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment and other equipment designed for sports activities. It also designs products specifically for the Jordan Brand and Converse. The Jordan Brand designs, distributes and licenses athletic and casual footwear, apparel and accessories predominantly focused on basketball performance and culture using the Jumpman trademark. The Company also designs, distributes and licenses casual sneakers, apparel and accessories under the Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell trademarks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
