Shares of Nike Inc. (NYSE:NKE) jumped in early trading on Wednesday after the company reported upbeat fiscal first-quarter results on Tuesday.
Here are some key analyst takeaways:
- JPMorgan analyst Matthew Boss reiterated an Overweight rating, while raising the price target from $93 to $100.
- Goldman Sachs analyst Brooke Roach maintained a Buy rating, while lifting the price target from $85 to $89.
- BofA Securities analyst Lorraine Hutchinson reaffirmed a Buy rating and price target of $84.
- Telsey Advisory Group analyst Cristina Fernández reiterated a Market Perform rating and price target of $74.
Check out other analyst stock ratings.
JPMorgan: Nike reported earnings of 49 cents per share, beating the consensus of 28 cents per share, which was driven by "a beat across all line items," Boss said in a note. The company generated revenue growth of 1.1% year-over-year, surpassing Street expectations of a 4.8% decline, driven by an inflection point in positive revenue growth across approximately 85% of its sales mix, he added.
Management guided to second-quarter revenues declining by low single digits, with gross margin contraction of 300 to 375 basis points (bps), the analyst stated. "Worth noting, 2Q's gross margin outlook excluding the incremental -75bps tariff headwind announced post close would translate to 2Q gross margins -225bps to -300bps Y/Y," he further wrote.
Goldman Sachs: Nike's "broad-based" beat provided several proof-points of the company's emerging momentum, Roach said. The most significant is the sequential growth in performance products, especially the running category, she added.
Management's revenue growth guidance for the fiscal second quarter was better than feared, the analyst stated. Although Nike's recently adopted sport offense strategy "is still early in execution, we believe this transition will enable better consumer insights and drive stronger results in product creation, brand marketing, and marketplace offense," she further wrote.
BofA Securities: Nike's quarterly wholesale sales indicated that the company's turnaround "is well underway," Hutchinson said. Although sales contracted sequentially by 1% in the fiscal quarter and management guided to a low-single-digit decline in the fiscal second quarter, both are "better than our modeled turnaround trajectory," he added.
Telsey Advisory Group: Nike's North America sales grew 4% in constant currency terms, with wholesale sales up 11%, Fernández said. "Running, where most of the product innovation has been concentrated, continues to outperform," she wrote.
Revenues from the running category grow more than 20% in the fiscal first quarter, accelerating from high-single-digit growth in the previous quarter, the analyst added. "In addition, wholesale order books for Spring 2026 are up YoY," building on the positive outlook for this year's holiday season, she further stated.
NKE Price Action: Nike shares were up 5.65% at $73.67 at the time of publication on Wednesday. The stock is trading within its 52-week range of $52.28 to $89.75, according to Benzinga Pro data.
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