UBS Reiterates Neutral Rating on Nike (NKE)

UBS analyst Jay Sole reiterated a Neutral rating and $62.00 price target on Nike (NYSE: NKE)

The analyst comments: "UBS Evidence Lab's 11th global sportswear survey is bullish for Nike, in our view. The survey shows Nike's brand remains strong and is improving y/y. The survey increases our conviction Nike's brand strength provides the foundation upon which it can ultimately stage a comeback. We continue to believe Nike's business will improve. Our rating is Neutral because we think its turnaround will take longer than the market expects.

Since Elliott Hill became CEO, Nike has prioritized re-entering the wholesale channel. In this year's survey, a higher percentage of global consumers say Nike's products are easy to find in stores and online. This percentage dropped from 2019 through 2022, but has rebounded to a new peak this year. We believe this is attributable to Mr. Hill's channel strategy. Under Elliott Hill's leadership, Nike has also refocused on sports. Likely as a result, the percentage of consumers who say Nike is "good for doing sports" bounced back to its 2019 peak level."

For an analyst ratings summary and ratings history on Nike click here. For more ratings news on Nike click here.

Shares of Nike closed at $60.00 yesterday.

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