RBC announced on Thursday that it has upgraded Nike shares to "outperform" from "sector perform" previously, with a target price raised from $76 to $90.
The Canadian broker backs up its optimism with the sports equipment manufacturer's improved offering in the running shoe segment, positive feedback from its distributors and customers, and its recent internal reorganization aimed at becoming faster and more efficient in its decision-making.
The broker thus says that it expects a recovery in sales, helped by next year's World Cup, which it believes could lead to better-than-expected results and upward revisions to its targets, with a limited risk of unpleasant surprises.
RBC, which says it expects revenue growth of between 5% and 6% p.a., indicates that its EPS forecasts for 2026/2027 and 2027/2028 are now 5% above consensus.
Nike, Inc. specializes in the design, manufacturing and marketing of sports shoes, clothing, and equipment. The group's products are sold primarily under the names Nike, Jordan, Converse Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell. Net sales break down by family of products as follows:
- footwear (66.9%);
- clothing (28.1%);
- sports equipment (4.8%): golf equipment (golf clubs, balls, gloves, etc.), bags, balls, etc.;
- other (0.2%).
At the end of May 2025, products were being marketed through a network of 1,034 stores worldwide, through independent distributors, and via the Internet.
Net sales are distributed geographically as follows: North America (42.3%), Europe/Middle East/Africa (26.5%), China (14.2%), Asia/Pacific and Latin America (13.5%) and other (3.5%).
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