Athletic apparel and footwear star Nike (NKE -0.03%) notched a stock market victory for its investors on Tuesday with a more than 3% increase in share price. That was due in no small part to an analyst upgrade, accompanied by some rather bullish commentary. Nike's lift was in contrast to the performance of the S&P 500 index, which slumped by 0.1% on the day.
From neutral to buy
Well before market open, John Staszak of Argus changed his Nike recommendation to buy (from his previous neutral) at a price target of $85 per share. That anticipates upside of more than 15% on the stock's most recent closing price.
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Staszak is convinced that Nike's present turnaround plan is having positive effects, according to reports, and it should help the company recover. The analyst wrote in his new note on Nike that it had success clearing its inventory in the second half of its fiscal 2025, and its current product lineup is up to date and bringing in customers.
In Staszak's view, with these tailwinds at its back, Nike should continue to be a powerful force in the always-competitive athleticwear space. He waxed bullish in particular about its strength in high-end athletic footwear. The latter, he believes, is well supported by effective marketing and the many athlete endorsements it's managed to collect.
Fourth-quarter tailwind
Nike stock has been on quite a tear since the company published its fiscal fourth-quarter 2025 results last Thursday after market close. Revenue and headline net income were both down on a year-over-year basis, but they beat analyst expectations.
Despite that, to me, those declines are concerning, and I'm not yet as convinced as Staszak that Nike is undoubtedly on the road to recovery. I'd be more hesitant to buy the stock than he is.
