Nike Shares Poised for Potential Rebound Ahead of Earnings

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A significant vote of confidence has emerged for Nike Inc. just days before its quarterly results announcement. RBC Capital Markets upgraded the sportswear giant to “Outperform” from its previous rating, simultaneously increasing their price target by a substantial 18% to $90. This bullish move signals a belief among some market experts that Nike’s stock, which has faced recent pressure, could be on the verge of a recovery.

The upgrade, positioned just twelve days ahead of the September 30th earnings release, is predicated on RBC’s anticipation of a steeper sales recovery than the market has currently priced in. This optimism exists despite a consensus forecast predicting a difficult quarter, with expectations for a 60% plunge in earnings per share (EPS) and a revenue decline exceeding 5%.