BTIG raises Nike stock price target to $55 on turnaround progress

BTIG has increased its price target for Nike Inc. (NYSE:NKE) to $55, up from an undisclosed previous level, while keeping the stock on a Buy rating. The current market price sits at $36.10, indicating the shares appear to be undervalued according to InvestingPro analysis. The firm anticipates Nike's first-quarter fiscal 2027 earnings report on October 1, with revenue projected at $11.4 billion, a 2.4% decline year-over-year.

Nike estimates a gross margin of 42.3%, up 12 basis points from the previous year, and an operating margin of 7.2%, down 70 basis points year-over-year. The estimated adjusted earnings per share (EPS) stands at $0.44. Under CEO Elliott Hill's leadership, Nike has been focusing on regaining brand relevance and refining its product offerings.

The company hopes to launch its reorganized sport offense products in the Spring of 2027 under Chief Innovation, Design, and Product Officer Phil McCartney. BTIG anticipates a better understanding of the innovation pipeline for 2027 during the November Investor Day. Nike is near the 25-year milestone for Dividend Aristocrat eligibility, boasting a 24-year streak of consecutive dividend increases, with a current yield of 4.5%.

The company paid out around $2.4 billion in dividends in fiscal 2026 and holds $9.0 billion in cash and short-term investments. BTIG's $55 price target is calculated using a price-to-earnings (P/E) multiple of 24.4 times its fiscal year 2028 EPS estimate, which is below Nike's five-year historical average forward P/E multiple of 27.3.

Other analysts have recently adjusted their price targets for Nike, with Stifel setting a $40 target, UBS at $42, and Telsey Advisory Group at $44, citing various concerns about the company's performance and market challenges.