Bernstein Raises Nike Price Target to $90, Maintains Outperform Rating

Bernstein raises Nike's price target to $90 from $85 and maintains an Outperform rating. The Jordan brand's potential to drive another multi-year wave of brand heat is a key factor in Nike's comeback story.

Bernstein analyst Aneesha Sherman has raised the price target on Nike (NYSE:NKE) to $90 from $85, while maintaining an Outperform rating. The move underscores the potential of Nike's Jordan brand to drive another multi-year wave of brand heat, a critical factor in the company's comeback story.

According to Bernstein, the earliest Nike could bring a compelling Jordan product to scale would be in the second half of 2026, corresponding to Nike's fiscal year 2027. In a bull scenario, a strong Jordan launch in Summer 2026 could initiate a multi-year brand cycle, potentially driving high-single-digit percentage growth for Nike with margins exceeding 13%. This scenario could lead to fiscal year 2029 earnings per share reaching $4.80, implying a current stock value of $120, representing a 56% upside [2].

Conversely, Bernstein warns that without successful Jordan brand revitalization, Nike’s total growth might only reach mid-single-digit percentages, with margins struggling to exceed low double digits by fiscal year 2029, resulting in earnings per share around $3.60 and implying a current stock price of $70, or a 9% downside [2].

Nike has recently regained shelf space at Foot Locker, a significant milestone in its turnaround efforts. The company's new CEO, Elliott Hill, is rebuilding wholesale partnerships following a former focus on direct-to-consumer channel sales. Retail sentiment on Nike remains neutral, with a 133% increase in user messages on Stocktwits over the last seven days [1].

However, Nike faces several challenges, including inventory issues in Greater China and North America, leadership changes at its Converse subsidiary, and potential margin pressure due to a new US-Vietnam trade agreement. Despite these challenges, Nike's stock saw a rise after a trade deal with Vietnam was announced, promising the U.S. "total access" to Vietnamese markets without tariffs on American products [2].

References:
[1] https://newsable.asianetnews.com/markets/nike-reclaims-pole-position-at-foot-locker-says-jpmorgan-retail-investors-believe-ceo-elliott-hill-is-making-the-right-moves-articleshow-dugw60r
[2] https://www.investing.com/news/analyst-ratings/bernstein-raises-nike-stock-price-target-to-90-on-jordan-brand-potential-93CH-4197521