Wells Fargo upgrades Nike, 'visibility now improving' as turnaround takes shape

Investing.com -- Wells Fargo analyst Ike Boruchow has upgraded Nike (NYSE: NKE) to Overweight from Equal Weight, raising the price target to $75 from $60 per share, saying the sneaker giant is finally showing clearer earnings visibility after years of negative revisions.

“We feel the time has come where visibility into NKE’s P&L direction (both on revs and margin) is finally improving,” analysts at Wells Fargo wrote.

The bank expects Nike’s earnings cycle to turn positive within the next six to nine months as sales stabilize and margins recover.

Wells Fargo raised its fiscal 2026 and 2027 earnings per share estimates to $1.70 and $2.40, respectively, while highlighting “bull case EPS power of ~$2.00 and ~$3.00 over the same time periods.”

The analyst believes Nike could exit fiscal 2026 with revenue growth of 3–4% and gross margins expanding by about 200 basis points.

“For the first time in years, a few things are happening: visibility is improving into NKE’s revamped strategies, material green shoots are appearing, and headwinds to the business are set to dissipate,” Boruchow stated.

The firm pointed to easing pressure from Nike’s “Classics” franchises such as Air Force 1 and Air Jordan 1, which have dragged on sales for more than a year.

It estimates “Classics headwinds have peaked,” with revenues from those lines expected to decline to $9 billion in FY26 from $11.5 billion a year earlier.

Meanwhile, “non-Classics” footwear has returned to growth, rising more than 20% in the first quarter.

Wells Fargo added that gross margin “visibility is high,” supported by improving pricing, lower liquidations, and a recovery in China.

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