Nike Stock Retains Retail Cheer, Thanks To Bill Ackman And A Wall Street Double-Upgrade

Nike (NKE) stock retained a ‘bullish’ sentiment (66/100) from a day earlier on Stocktwits despite facing underlying challenges, on the heels of two positive developments: a double-upgrade from Williams Trading and a new stake by billionaire investor Bill Ackman.

Williams Trading boosted its rating on Nike from ‘Sell’ to ‘Buy’ and raised the price target to $93 from $67, based on the recent rehiring of Tom Peddie as the head of U.S. wholesale.  

Analysts believe Peddie's return signals a renewed focus on wholesale partnerships, which have been strained in recent years. They  point to positive feedback from Nike's wholesale partners and suggest Peddie wouldn't return without plans for further improvements.

Peddie retired from the sportswear giant back in 2020, having last served as Nike’s general manager of emerging markets and heading its North American region.

Adding to the optimism, billionaire investor Bill Ackman's Pershing Square Capital Management on Thursday revealed it had newly added more than 3 million shares in Nike during Q2.

However, Nike still faces significant headwinds. The company is grappling with slowing sales in China, rising competition from brands like On Holding and Hoka, and weak consumer sentiment in an uncertain economic environment.  

Despite efforts to restructure leadership, refocus marketing, and tighten supply chains, Nike is yet to see a turnaround.

Recent reports show a 2% decrease in Q4 revenue and projections of mid-single-digit sales declines in 2025. The company itself expects a 10% dip in first-quarter sales alone, partly due to Nike's rapid shift to a digital platform, which the company once believed could drive more than half of its sales.

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