Nike is a growing Street favorite as more analysts join Jim Cramer in signalling confidence in CEO Elliott Hill’s efforts to turn around the struggling iconic brand. Wells Fargo upgraded Nike to a buy from a hold on Thursday, citing improved visibility into Nike’s future. The analysts also raised their price target to $75 per share from $60, implying 13% update from where shares were trading Thursday afternoon. A key part of Wells Fargo’s investment thesis is the return of Hill and his plans for refocusing the company on sports, reviving innovation, and restoring relationships with wholesale and retail partners after his predecessor stuck with direct-to-consumer sales for too long after Covid. Jim agrees and has been ahead of the curve . During Thursday’s November Monthly Meeting for Club members, Jim said, “We’re in much better hands” with Hill, who came out of retirement to become CEO just over one year ago. He started at Nike as an intern in 1988 and rose through the ranks over a more than 30-year career at the company, holding numerous executive positions. “I have spent a lot of time with Elliott Hill. He’s an athlete,” Jim said. “I do think that the quarter’s actually going well,” Jim stressed. With major global marketing opportunities such as the men’s soccer World Cup next year, he said he has faith in Hill’s ability to continue to make progress in turning around Nike. “We’re starting to talk about the World Cup. It’s always been a reason to buy Nike. I have done it over and over and again,” Jim said. Nike is set to report fiscal 2026 second-quarter results next month. While popping after its Sept. 30 earnings print, shares have since slipped. The stock, which has been on a three-session winning streak, has still fallen nearly 13% year to date. NKE YTD mountain Nike YTD Striking a bullish chord similar to Bank of America’s bullish take earlier this week , Wells Fargo also said that Nike’s inventory headwind has been dissipating, giving the company the “potential to exit fiscal year 2026 growing revenues 3-4%.” It’s no secret that the inventory oversaturation of Nike’s classic sneakers — including Air Force 1’s, Air Jordan 1’s, and Dunks — has pummeled financials for some time. Wells Fargo analysts estimate that “Nike will have absorbed a total $6 billion headwind from market cleanup on these three Classics franchises” once the dust settles. Things, however, are starting to come together for Nike. Wells Fargo noted that sales outside those legacy franchises are up over 20%. The analysts said Nike’s revamped Vomero and Pegasus lines are boosting volumes. Furthermore, they said that North America margins should grow as Nike moves further away from heavy wholesale discounts and pricing stabilizes. Nike’s own digital platform, Nike Direct, is also seeing improved average and full-priced selling prices. China remains a problem for Nike , with sales down in the region as consumers there remain cautious on spending. Nike is still clearing up inventory in the world’s second-largest economy, which analysts think will continue through mid-2026. The Club has a buy-equivalent 1 rating on Nike and an $80-per-share price target . We started our Nike position on Sept. 26 and have made three more buys since — the latest was on Oct. 31 . (Jim Cramer’s Charitable Trust is long NKE. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
