Argus Upgrades Nike to Buy, Stock Gains 3%

Argus has upgraded NIKE (NYSE:NKE) to Buy from Hold, setting a price target of $85, citing signs of an ongoing recovery fueled by inventory normalization, improved pricing through e-commerce, and the company’s continued brand dominance. Following the upgrade, the company’s shares rose more than 3% intra-day today.

The firm noted that after aggressively clearing excess inventory in the second half of fiscal 2025, Nike’s product lineup is now more current and resonating better with consumers. Additionally, Nike is leveraging its direct-to-consumer and online channels to strengthen pricing power, supporting margins as demand stabilizes.

Argus remains bullish on Nike’s long-term prospects, emphasizing its leadership in the athletic apparel and footwear markets, bolstered by strong marketing, athlete endorsements, and a powerful brand that commands premium pricing, especially in high-end footwear.

While acknowledging the industry’s fierce competition, the analyst expects Nike to capitalize on its global scale, product innovation, and expanding presence in emerging markets to sustain growth. The upgrade reflects growing confidence that Nike’s strategic initiatives will drive a meaningful turnaround and support share price appreciation.