Nike’s (NKE) annual earnings estimates “finally look achievable” on management’s “bold steps to transform” following a stock slump, BofA Securities said Thursday in a report.
Calling Nike’s valuation “compelling,” BofA upgraded the stock to buy from neutral and raised the price objective to $113 from $110.
The EPS consensus of $3.99 in fiscal 2025 and $4.49 in fiscal 2026 EPS appear achievable as the company’s management takes steps to transform the business and benefits from marketing around the Paris Olympics this year.
“Management has acknowledged a need for big changes, and continued shakeup in the team and processes from the recently
announced cost savings plan could also spur faster sales stabilization,” BofA said.
Shares of Nike rose 3.4% in recent trading Thursday.