RBC Upgrades Nike (NKE) to Buy Ahead of Q1 Earnings, Citing Sales Recovery and World Cup Boost

RBC Capital Markets has upgraded Nike to Buy from Neutral, raising its price target to $90 from $76 ahead of the company's Q1 FY26 earnings report. Analyst Piral Dadhania expects a faster-than-anticipated sales recovery, driven by new product launches and the commercial tailwind from the 2026 FIFA World Cup.

Nike's marketing budget of $4.9 billion for FY26—nearly double that of some competitors—positions it to regain market share from fast-growing rivals like On Holding and Hoka. The World Cup alone could contribute $1.3 billion in sales, with Nike supplying kits for marquee teams including the U.S., England, and Brazil.

The upgrade reflects confidence that Nike's underperformance has bottomed, with positive growth likely by Q3 FY26. Investor sentiment may improve as competitors' growth slows and Nike's innovation pipeline gains traction.