Barclays Upgrades Nike Stock: Has It Finally Hit a ’Fundamental Bottom’?

Barclays issued a bullish upgrade on Nike stock, signaling the athletic giant may have reached a 'fundamental bottom' after a prolonged downturn. The call suggests a potential inflection point for the beleaguered shares, with analysts pointing to valuation support and a path to recovery.

Key Takeaways

• Barclays analysts upgraded Nike's stock Wednesday, anticipating a turnaround from its recent slump. 
• The analysts pointed to progress in the athletic apparel maker's turnaround, and suggested its earnings may have bottomed.

Nike's stock could soon be due for a rebound, according to analysts at Barclays.

Barclays analysts upgraded Nike's (NKE) stock to "overweight" Wednesday and lifted their price target to $73 from $64, anticipating a turnaround from its recent slump. The shares slipped less than 1% to close just under $56 Wednesday, leaving them down nearly 25% over the past 12 months.

The analysts said they believe investors may have reached "peak skepticism" as Nike's financials hit a "fundamental bottom." Nike's "recent operational progress, financial inflections, and management’s disciplined actions" could point to a coming reset, they said.

Why This Matters to Investors

Nike replaced its CEO in late 2024, amid declining sales and growing competition from other brands. The upgrade from Barclays could be taken as a vote of confidence in the company's turnaround.

Barclays also said it expects Nike's improvements in North America could soon start to outweigh concerns about sales in China and worries about higher tariffs that have dominated in recent quarters.

Barclays' new price target is roughly in line with the Visible Alpha consensus target of about $72, which implies about 30% upside from Wednesday's close. Among the 14 analysts with current ratings, eight other brokers have recommended buying Nike's stock, compared with five neutral ratings, and just one "sell" rating.

Investors will get their next update on Nike's financials when the company reports fiscal third-quarter earnings after the market closes on March 31.

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Nike shares are down about 13% year-to-date and have lost nearly a quarter of their value in the last 12 months.