Nike’s Stock Price Target Raised to $95

BMO Capital has adjusted its price target for Nike's stock, raising to $95 whilst maintaining an Outperform rating. Shares of Nike are down 2.31% at $75.12 in the pre-market session, with markets broadly being shaken by tariff news over the weekend.

Simeon Siegel, an analyst at BMO Capital, has increased the firm's price target on Nike from $92 to $95, while reaffirming an Outperform rating. Siegel draws parallels between Nike's current challenges and those it overcame in 2015 to 2017, indicating a strong belief in the company's ability to replicate its successful strategies from the past for future growth. He asserts that Nike has not only mapped out but also initiated its path to improvement, conveying a strong sense of conviction to investors in his research note.

With its headquarters nestled in Beaverton, Oregon, NIKE, Inc. positions itself prominently within the Consumer Cyclical sector, specifically in the Footwear & Accessories industry. Nike’s diversified business operations encompass the design, development, and worldwide marketing and sales of athletic footwear, apparel, equipment, and accessories. Their expansive product range is sold under several prestigious trademarks, such as NIKE, Jumpman, and Converse, to name a few.

Underpinned by its digital platforms and a global distribution network spanning NIKE-owned retail stores and various retail accounts, the company continues to set benchmarks in the athletic fashion and performance gear markets.

The latest data points to a market cap of $113.75 billion for Nike, with its stock price fluctuating within a 52-week range of $70.32 to $107.43. The stock is currently trading closer to the 52 week low after falling 22.85% over the past 12 months as the firm undergoes continued shifts in strategy and leadership.

Nike's sound financial health is reflected in a trailing P/E ratio of 23.73 and a forward P/E ratio of 31.07. Investors also benefit from a dividend rate of $1.60, corresponding to a yield of roughly 2.08%, supported by a payout ratio of 46.6%. With revenue streams generating a total of more than $50 billion, and net income attributable to common stockholders of approximately $5.3 billion, the company remains on solid ground.

Analysts have an average price target of $86.78 on Nike, with the high of $120 set against the low of $50. There is clearly a huge gulf in the views on the street here, with the path forward for NKE likely to contain periods of volatility as the alternating narratives play out.