Nike’s stock price could double, according to analysts at UBS, which believe that even the most “bull case” scenario has a high probability of occurring this year.
The broker set a 12-month price target of US$150 while reiterating its Buy rating on the American sportswear giant.
Specifically, UBS believes that Nike’s long-term sales and margin targets are “very achievable” after a meeting with Nike.
“If Nike were to reach these targets by the financial year 2026, earnings per share (EPS) could reach at least US$6.50.”
If the stock holds its price/earnings ratio, UBS believes it has the potential to double.
“While this scenario is closer to our ‘bull case’ vs our base case view which incorporates a global macro slowdown, it still has a reasonable probability of playing out.”
“Moreover, we have high conviction, based on our conversations with investors, the stock is not pricing in close to US$6.50 in the financial year 2026 EPS.”
The broker believes the stock could start to move higher when Nike reports its first-quarter earnings in late September, or possibly even sooner.