Nike Is Back! The Smart Moves Driving Today’s Stock Surge

Nike’s stock had a big day today, jumping nearly 5% to close at $80.28. The reason? A strong vote of confidence from Wall Street.

Analysts at Jefferies just upgraded Nike from “Hold” to “Buy” and set a bold new price target of $115. That means they believe the stock could climb another 40% from here.

So, what’s behind this sudden optimism? Let’s break it down.

Wall Street Thinks Nike Is Undervalued

Jefferies analysts made it clear in their report: Nike’s stock is too cheap right now, and investors should take advantage.

“With shares near a valuation trough, we believe now is the right time to aggressively buy shares,” they wrote.

Basically, they’re saying Nike is at a low point, but the company has a lot of room to grow. Investors took notice, and the stock jumped.

Nike’s New CEO Is Making Big Changes

Another big factor? Nike’s leadership shakeup. In October 2024, Elliott Hill stepped in as the new CEO, and he’s wasting no time making adjustments.

One of the biggest changes he’s making is fixing Nike’s relationships with big retailers. Over the last few years, Nike focused on selling directly to customers, cutting out a lot of major stores. While that worked in some ways, it also hurt sales.

Hill is bringing back key retail partnerships, making sure Nike’s products are easy to find both online and in stores. Investors love this balanced approach because it means more sales and more profit.

Nike Teams Up with Kim Kardashian

One of Nike’s most talked-about moves lately is a brand-new partnership with Kim Kardashian. The company announced a new NikeSKIMS line of shapewear, set to launch this spring.

This is very important. In addition to being one of the most significant figures in fitness and fashion, Kim Kardashian is also driving rapid growth in the shapewear industry.

The stock of Nike surged 3% as soon as this arrangement was revealed. It’s obvious that investors believe this collaboration is a clever strategy to draw in younger, fashion-forward customers.

Can Nike Keep This Momentum Going?

It hasn’t been an easy year for Nike—the stock is still down 24% over the past 12 months. But analysts believe things are turning around.

Jefferies predicts Nike will see stronger profits and higher earnings by 2027 than most people on Wall Street expected. On top of that, surveys show Nike is still one of the most popular brands, with more than half of U.S. consumers planning to buy Nike sneakers soon.

That’s a great sign for future growth.

Nike is making all the right moves—bringing in new leadership, repairing relationships with retailers, and teaming up with big names like Kim Kardashian.

Wall Street is taking notice, and today’s stock surge shows investors believe Nike is on the path to a big comeback.