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Nike’s latest quarterly report showed the company is righting its ship, according to KeyBanc. The bank upgraded the apparel retailer to overweight from sector weight. Its price target of $90 implies upside of more than 21% from Wednesday’s close. Nike on Tuesday reported fiscal first-quarter earnings and revenue that beat analyst expectations. And while the company did warn about a sluggish holiday season, KeyBanc analyst Ashley Owens thinks Nike is positioning itself for a “sustainable recovery” after languishing in recent years. “We believe 1Q results highlight improving trends from ‘Win Now’ actions. While we acknowledge some [near-term] choppiness remains from tariffs, digital, and China, we believe that the Sport Offense, innovation pipeline, and marketplace resets will continue to better position Nike for a return to sustainable growth/margin recovery,” Owens said in a note dated Wednesday. Nike shares jumped 6% on Wednesday following the earnings. NKE YTD mountain NKE year to date Still, the shares are down nearly 2% this year, lagging the S & P 500’s 14% advance in that time. The stock is on pace for its fourth straight annual decline as competition from other shoe makers such as Hoka ramps up. But “Nike’s running business continues to show strong progress, growing over 20% in the quarter; notably, the reset of its product structure (three silos and price points) should allow the Company to introduce one new major running footwear style each season,” Owens said. Nike ticked 0.5% higher after the upgrade in early trading. Analysts are split on the stock. LSEG shows that 20 of the ones covering it rate it a buy or strong buy. The other 19 have a hold or underperform rating. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
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