Nike stock got a solid boost this week after JPMorgan upgraded the stock, breathing new life into investor sentiment around the brand.
On Monday, the Nike stock jumped about 4%, hitting a five-month high near $79.56.
The upgrade moved Nike from a “Neutral” to an “Overweight” rating, with JPMorgan also hiking its price target from $64 to $93, suggesting nearly 22% upside from the previous close.
It’s no secret Nike’s had a rough run lately.
Sales have been soft, margins have taken a hit, and the stock has mostly lagged through 2025.
For most of the year, the share price barely budged up less than 1% weighed down by sluggish retail demand, fewer digital shoppers, and ongoing inventory hiccups.
But JPMorgan seems to think the worst may be behind them.
The firm pointed to signs that Nike’s recovery plan is starting to take shape, with room for better margins, a cleaner product pipeline, and renewed momentum that could get the brand growing again.
Nike stock: What JPMorgan said
JPMorgan analyst Matthew Boss sounded upbeat in his latest note, calling this a potential turning point for Nike.
He sees the company hitting its stride again in the second half of fiscal 2026, with momentum carrying into 2027 as revenue and margins start to pick up.
According to Boss, Nike has spent several quarters working through excess inventory and sorting out issues with key product cycles, and now, it’s finally in a position to grow again.
One of the biggest positives: management is on track to sync global inventory levels with actual sales by the end of Q2 2026, which could go a long way in keeping the recovery on track.
There are also signs of life in Nike’s wholesale business.
Order books are starting to fill up, and retailers are reportedly responding well to the Spring/Summer 2026 lineup, which includes new product launches and fresh innovation.
Boss also pointed to an unusual spike in sales reserves during the back half of 2025, something JPMorgan believes will set up a 350-basis-point revenue boost year-over-year in early 2026.
What’s driving Wall Street’s optimism?
Nike has had its fair share of setbacks recently. Back in Q1 of fiscal 2025, revenue dropped by 10%, and leadership uncertainty grew after the company pulled its full-year guidance.
With Elliott Hill set to step in as CEO, there were a lot of questions swirling. Margins also took a hit, not surprising given the softer sales and rising costs.
Still, Nike kept a tight grip on spending and continued investing in its brand, setting the stage for a possible bounce-back.
That bounce might finally be taking shape. The market clearly liked what it heard from JPMorgan as Nike’s stock jumped on the upgrade and even crossed the $80 mark briefly.
It’s a sharp shift from earlier this year, when firms like JPMorgan and Morgan Stanley were much more cautious, given all the uncertainty.
Now, investor sentiment seems to be turning, with growing confidence that Nike can pull off a longer-term turnaround by focusing on fresh products, smarter inventory management, and tighter cost controls.
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