Bank of America Securities Maintains Buy Rating on NIKE (NKE) Stock

NIKE, Inc. (NYSE:NKE) is one of the Best Wide Moat Stocks to Buy Right Now. The company’s wide moat stems from the intangible brand asset. On October 6, Lorraine Hutchinson, an analyst from Bank of America Securities, maintained a “Buy” rating on the company’s stock, while the associated price target remained same at $84.00. The analyst’s rating is backed by NIKE, Inc. (NYSE:NKE)’s improved sales performance, mainly due to the healthy unit volumes throughout various regions. As per the analyst, the rise in units sold, primarily in apparel and footwear, exhibits a positive trend.Bank of America Securities Maintains Buy Rating on NIKE (NKE) Stock

Furthermore, this growth was helped by the new distribution points as well as value channel sales. While NIKE, Inc. (NYSE:NKE)’s gross margin witnessed contraction in Q1 2026, there is an anticipation of sequential improvement in H2 of the year. The expected improvement is backed by the lapping of previous wholesale support actions, which can help offset challenges due to the tariffs and market fluctuations in China and Converse. Notably, in Q1 2026, NIKE, Inc. (NYSE:NKE)’s gross margin fell 320 basis points to 42.2%.

Pershing Square Holdings, an investment holding company, released its H1 2025 investor letter. Here is what the fund said:

“NIKE, Inc. (NYSE:NKE) is in the early stages of a turnaround under new CEO Elliott Hill. In the ten months since rejoining the company, Hill has moved with urgency, replacing 12 out of his 15 direct reports and resetting the culture and organizational structure with a renewed focus on sport. Hill’s “Win Now” strategy targets a return to profitable growth by accelerating product innovation, creating distinctive marketing, and rebuilding wholesale distribution, while right-sizing inventory levels across certain product lines and sales channels following several years of overreliance on direct-to-consumer and lifestyle footwear. While a full turnaround will take time, we are beginning to see encouraging signs of progress.

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Disclosure: None. This article is originally published at Insider Monkey.

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