Nike Stock Logs Biggest One-Day Gain In Its History After Q4 Beat Sparks Upgrade and Price Hikes

Shares of Nike (NKE) surged more than 18% in intraday trade Friday, marking their biggest single-day gain ever, after fourth-quarter results topped Wall Street estimates and prompted an upgrade from HSBC, along with several price target hikes.

Nike reported revenue of $11.1 billion, exceeding analysts' estimates of $10.72 billion. Its earnings per share came in at $0.14, higher than the expected $0.12.

Nike’s stock hit a high of $72.44 on Friday, its highest level since March earlier this year. Retail sentiment on Stocktwits surged to a year-high of 98 within the ‘extremely bullish’ zone amid ‘extremely high’ levels of chatter around the company’s performance.

According to HSBC, there is “now more than tangible evidence” that Nike has a path to see its sales rebound in the “not-too-distant-future.” In a note to investors cited by TheFly, the analysts hiked their rating on Nike’s stock to ‘Buy’ from ‘Hold’ with a price target of $80, up from $60, after the company’s fourth quarter results. 

HSBC said it believes Nike's margins will be "repaired" despite unfavorable tariff headwinds from Trump’s trade policies, contending that after two quarters of inventory clean-up, the bulk of Nike's brand assortment "should be current and exciting." 

The research firm also mentioned its appreciation for the new management team, which was not “cutting corners and is committed to quality."

Baird is currently the most bullish on Nike’s shares, increasing its price target to $88, up from $80, with an ‘Outperform’ rating. Bank of America (BofA) and Truist also kept their price targets above $80. BofA hiked its target to $84, up from $80, with a ‘Buy’ rating, stating that the “worst is behind” Nike. 

Truist raised its target to $85, up from $73, also with a ‘Buy’ rating, citing that the company’s turnaround efforts were yielding more rapid improvements than investors were anticipating.

Nike’s shares have fallen nearly 4% this year and 21% over the past 12 months. 

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