BTIG has reaffirmed a Buy recommendation on Nike, maintaining a $100.00 price target for the stock that implies roughly a 54% upside from the current market level of $64.99. InvestingPro data notes Nike is trading marginally below its assessed Fair Value.
The research firm frames its call around the strategic approach taken by Nike’s leadership to tackle several competitive pressures. CEO Elliott Hill, who assumed leadership in October 2024, inherited a set of challenges that includes a slow North American business, deterioration in China, and headwinds associated with the Converse brand. Those factors have coincided with a 5.03% decline in revenue over the last twelve months for the company, which operates in the Textiles, Apparel & Luxury Goods industry.
According to BTIG, Nike has shifted to a more deliberate cadence across multiple seasons. Management has elected to sequence the turnaround by concentrating resources and bandwidth on North America first - both from an investment standpoint and in terms of managerial attention. The firm describes this North America-first emphasis as intentional and aims to address the market that management views as the immediate priority.
At the same time, BTIG points out that Nike has moved to increase focus on the Greater China market, an area the firm says carries elevated importance for both investors and the company itself. While BTIG notes that greater emphasis on China might have been useful earlier in the turnaround, the research house supports management’s decision to fix one region at a time. That disciplined sequencing, BTIG argues, positions Nike for sustainable long-term growth even if nearer-term headwinds persist.
Beyond regional strategy, Nike has announced a set of leadership transitions across its geographic organization. César Garcia will take on the role of VP/GM for Europe, Middle East, and Africa (EMEA) beginning February 2, succeeding Carl Grebert, who is retiring after nearly thirty years with the company. In Greater China, Cathy Sparks will replace Angela Dong as VP/GM; Dong is departing after more than two decades with the business. Cristin "Crissy" Campbell will serve in an interim capacity as VP/GM for Asia Pacific & Latin America.
Nike also completed the sale of its digital products subsidiary, RTFKT, marking an exit from that blockchain collectibles initiative about a year after the unit was closed. The sale was finalized on December 17; Nike has not disclosed the buyer or the financial terms of the transaction.
Market watchers beyond BTIG have also weighed in. Jefferies reiterated its Buy rating on Nike and kept a $110 price target. In its commentary, Jefferies noted the company’s potential to reach Dividend Aristocrat status by 2026, a milestone that would reflect a multi-year record of dividend increases.
Taken together, the analyst commentary, executive reshuffling, and the divestiture of RTFKT form a picture of a company re-prioritizing its resources and leadership to execute a staged recovery. BTIG’s view supports a patient, region-by-region remediation plan that aims to deliver sustainable growth over time, acknowledging that short-term pressures may remain while the strategy is implemented.
Summary
BTIG reiterated a Buy rating and $100.00 price target on Nike, highlighting management’s decision to prioritize North America in a staged turnaround while increasing focus on Greater China. The company announced several regional leadership changes and sold its RTFKT digital products subsidiary. Jefferies also maintained a Buy rating with a $110 target and cited the potential for Dividend Aristocrat status by 2026.
Key points
- BTIG reiterates Buy on Nike with a $100.00 price target, implying about 54% upside from $64.99; InvestingPro shows the stock trading slightly below Fair Value.
- Management is executing a multi-season turnaround that prioritizes North America first, then refocuses attention on Greater China.
- Leadership changes include new VP/GM appointments for EMEA, Greater China, and an interim leader for Asia Pacific & Latin America; Nike also completed the sale of RTFKT.
Risks and uncertainties
- Near-term headwinds could persist while Nike sequences its turnaround region by region - this could affect revenue recovery in the short run, impacting apparel and retail sectors.
- Continued weakness or slower-than-expected recovery in Greater China remains a material uncertainty for Nike’s international revenue performance.
- Operational disruption or integration impacts from leadership transitions, as well as the strategic effects of exiting the RTFKT unit, create execution risk during the implementation of the turnaround.