Goldman Sachs Boosts Nike Price Target to $85, Maintains Buy Rating

Goldman Sachs has increased Nike's (NKE) price target to $85 from $81, maintaining a Buy rating. The firm's revised outlook accounts for current tariff rates and identifies several risk factors to monitor. Analysts forecast an average target price of $76.05 with a high estimate of $120.00 and a low estimate of $38.00, indicating a 2.75% upside from the current price of $74.02. The estimated GF Value for Nike Inc in one year is $93.71, suggesting a 26.6% upside from the current price.

Goldman Sachs has revised its price target for Nike (NKE) shares, increasing it to $85 from the previous $81, while maintaining a Buy rating. The adjustment is part of the firm's updated outlook for the U.S. apparel and softlines industry, which now accounts for current tariff rates [1].

The revised estimates consider tariff rates of 30% for China, 20% for Vietnam, 19% for Indonesia, and 10% for other regions. Despite these tariffs, Goldman Sachs remains optimistic about consumer resilience and does not anticipate significant downside to sales projections this quarter. However, several risk factors, such as tariff impacts and market challenges, warrant close observation [1].

Analysts' consensus is bullish on Nike, with an average target price of $76.05, ranging from $38.00 to $120.00. This implies an average upside of 2.75% from the current price of $74.02. GuruFocus estimates a GF Value of $93.71 for Nike Inc in one year, suggesting a potential 26.6% upside from the current price [1].

In its latest earnings report, Nike Inc reported a 12% decline in revenues for the fourth quarter, with significant drops in NIKE Digital and wholesale segments. Gross margins declined by 440 basis points due to higher discounts and supply chain costs. The company is facing challenges in the Greater China market and dealing with new tariffs expected to have a $1 billion cost impact [1].

Despite these challenges, Nike is implementing 'Win Now' actions to reposition its brands and business for future growth. The company is focusing on a sport offense strategy, expanding distribution with strategic partners, and seeing positive feedback from wholesale partners. Nike is also making progress in rebalancing its product portfolio, with strong performance in running and women's basketball segments [1].

References:
[1] https://www.gurufocus.com/news/2992961/nike-nke-receives-updated-price-target-from-goldman-sachs-nke-stock-news
[2] https://www.tipranks.com/news/the-fly/nike-price-target-raised-to-85-from-81-at-goldman-sachs-thefly