Nike shares have had a tough year in 2026, but Jefferies believes this might be a good opportunity for investors to buy while prices are low.
Jefferies said Nike’s first-quarter earnings, which are expected on Thursday, should show more progress. The firm remains positive on the stock and set a price target that suggests shares could more than double from where they are now.
Nike shares are down 44% this year, mainly because of weak demand in China and more competition in other markets. For example, Swiss brand On Holding recently signed soccer star Kylian Mbappé, who left Nike earlier this month.
Jefferies expects the new results to show that both the North American market and Nike’s wholesale business are stabilizing. The firm forecasts earnings of 48 cents per share and sales of $11.5 billion, both slightly higher than Wall Street expects.
There could be an even bigger event coming up. Jefferies thinks Nike’s investor day in mid-November could boost the stock, especially since the new chief financial officer, David Denton, might share updated financial plans. Since a new CFO is not tied to previous guidance, Jefferies believes the investor day will be more important than the upcoming earnings report. The key will be whether management sets realistic targets for 2027 and 2028 that they can meet or beat.
This positive outlook comes after another tough month for Nike. The stock was taken out of the S&P 100 on September 21, and it could also lose its spot in the Dow Jones Industrial Average.
