Have Faith in Nike's Turnaround, Barclays Says -- Market Talk

Dow Jones03-11 23:22

1122 ET - Nike's progress in managing inventory, executing a reset and prioritizing brand health and margin stabilization gives Barclays confidence to upgrade the stock to overweight from equal weight, despite peak investor skepticism, the analysts say. They believe investor concerns miss evidence of Nike's turnaround already bearing fruit and ignore stabilization in North America while overemphasizing priced-in risks in China. Consensus estimates for fiscal 2027 and 2028 are probably too high, the analysts say, but Nike can reset expectations by providing a longer-term outlook that includes fiscal 2027, giving the company breathing room to execute the turnaround. "With each consensus reset coming in closer to our estimates, we believe downside risk is increasingly limited, while the setup for future beat-and-raise dynamics improves as expectations reset to more realistic levels." (elias.schisgall@wsj.com)

(END) Dow Jones Newswires

March 11, 2026 11:22 ET (15:22 GMT)

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