This Sportswear Giant Got Added To Jefferies’ Franchise Picks List – Find Out More

Jefferies noted that with holiday order books already up year-over-year for Nike, the firm sees the potential for a clean inventory position by the first half of 2026.
A garden in the shape of a Nike corporate logo is seen in an office building patio in midtown Manhattan on April 6, 2023, in New York City. (Photo by Gary Hershorn/Getty Images)
A garden in the shape of a Nike corporate logo is seen in an office building patio in midtown Manhattan on April 6, 2023, in New York City. (Photo by Gary Hershorn/Getty Images)
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Published Sep 08, 2025 | 8:20 AM GMT-04
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Nike (NKE) was added to Jefferies’ "Franchise Picks List" on Monday, with the analyst citing that Wall Street was underappreciating the recovery happening at the sportswear maker.

Shares of Nike were up 1% before the bell. Jefferies said it believes that the Street underappreciates the ongoing recovery for "the clear category leader,” according to TheFly. Retail sentiment on Nike remained unchanged in the ‘bearish’ territory, with message volumes at ‘high’ levels, according to data from Stocktwits.

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NKE sentiment and message volume September 8, 2025, as of 7:30 am ET | Source: Stocktwits

Nike is undergoing a turnaround under new CEO Elliott Hill, who has been boosting the company’s presence in the running shoes category to gain market share lost to newer brands such as Roger Federer-On Holding and Deckers’ Hoka. The company has also been reestablishing its relationships with wholesale retailers in the United States, following a push under the previous CEO to focus solely on direct-to-consumer channels.

Jefferies noted that with holiday order books already up year-over-year, the firm sees the potential for a clean inventory position by the first half of 2026. The firm added that it also anticipates headwinds easing, paving the way for sales and margin improvement.

Nike is expected to post its first-quarter results on September 30. Its quarterly revenue is expected to be $10.96 billion, and earnings per share (EPS) are estimated to be $0.27, according to data compiled by Fiscal AI.

Jefferies noted that its fiscal 2027 EPS forecast is "well ahead of consensus." The firm has a ‘Buy’ rating and $115 price target on Nike.

Shares of Nike have declined by over 2% this year and by 7% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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