Nike (NYSE: NKE) stock has received a rare Wall Street upgrade despite mounting pressure on the athletic apparel giant following its latest quarterly earnings report.
In this case, Freedom Broker upgraded Nike shares from ‘Sell’ to ‘Buy’ on October 2 while lowering its price target to $51 from $54. Based on Nike’s share price of $33.59, the new target implies a potential upside of roughly 52%.
The upgrade comes at a challenging time for Nike. The stock is down about 53% over the past year, making it one of the worst-performing large-cap consumer stocks during the period.
According to Freedom Broker, the upgrade reflects confidence in Nike’s long-term turnaround strategy despite weak near-term fundamentals.
The analyst pointed to the company’s newly launched Pace transformation program, which aims to simplify operations, improve productivity, and accelerate Nike’s Sport Offense strategy. Management expects the initiative to generate approximately $2.5 billion in cumulative savings through fiscal 2031.
Freedom Broker acknowledged that Nike faces a multi-year restructuring effort across its Sportswear division, Jordan Brand, and Greater China business. However, the firm believes the turnaround potential outweighs the current challenges, leading to the rating upgrade.
Wall Street cautious on NKE stock
Meanwhile, TradingView data shows the Wall Street consensus analyst price target for Nike stands at $37.78, representing an upside of about 11.5% from current levels.
Among 43 analysts tracked, the stock currently carries a neutral consensus rating, with most analysts maintaining hold recommendations.
Notably, Freedom Broker’s bullish rating change follows Nike’s fiscal first-quarter 2027 results, which disappointed investors.
Revenue fell 4% year over year to $11.2 billion, missing analyst expectations, while sales in Greater China declined sharply. Weakness also persisted across Sportswear, Jordan Brand, and the Europe, Middle East and Africa region.
At the same time, adjusted earnings per share came in at $0.48, ahead of some Wall Street estimates, while gross margin expanded 60 basis points to 42.8%, helped by lower warehousing and logistics costs.
Nike also reported stronger momentum in performance-focused categories such as running and football, areas management has identified as key growth drivers under its Sport Offense strategy.
Nike lowers expectations for fiscal 2027
Despite the analyst upgrade, Nike’s outlook remains subdued. The company expects fiscal 2027 revenue to decline at a high-single-digit rate, while adjusted diluted earnings per share are projected between $1.15 and $1.35, excluding restructuring-related expenses.
Chief Executive Elliott Hill has indicated that the company continues to work through excess inventory issues and brand repositioning efforts, particularly in lifestyle products and Greater China.
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