This is the latest addition to Jefferies Franchise Picks List

Investing.com -- Jefferies has added Nike (NYSE: NKE) stock to its Franchise Picks list, stressing that the sportswear giant remains “the clear category leader” and that the Street is underestimating the strength of its recovery.

Analysts pointed to improving Nike’s fundamentals, noting that holiday order books are already running ahead of last year.

They expect inventory to be in a clean position by the first half of fiscal 2026 (FY26) and see easing headwinds creating room for better sales and margin performance.

“We anticipate headwinds ease, paving the way for sales and margin improvement. Our F27 EPS is well ahead of consensus,” analyst Randal J. Konik said in a note.

Alongside the financial recovery, Nike is reshaping its brand messaging. The company recently unveiled a global campaign titled “Why Do It?”, a modern reimagining of its iconic “Just Do It” slogan.

The initiative aims to connect with Gen Z by highlighting introspection while promoting courage and self-expression through sport.

The campaign features athletes including LeBron James, Caitlin Clark, and Saquon Barkley, reflecting Nike’s push to engage younger audiences and adapt to shifting consumer expectations.

Jefferies holds a Buy rating and a $115 price target on Nike shares.

Last month, Nike said it would cut fewer than 1% of its corporate staff as part of efforts to revive its business under new Chief Executive Elliott Hill.

The company employed about 77,800 people worldwide as of May 31, including retail and part-time workers. The cuts follow Hill’s June comments that Nike would “realign” into cross-functional teams organized by sport.

The reductions will not affect Nike’s EMEA or Converse units, though the exact number of jobs impacted was not disclosed.

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