Nike Inc (NYSE:NKE, ETR:NKE)’s recent stock pullback provides an attractive entry point for investors, according to analysts at Bank of America, who maintain a ‘Buy’ rating on the athletic apparel and footwear brand.
Nike shares are down about 6% over the last month, trading at about $63 compared to the bank’s $84 price target. In the year-to-date, shares are down more than 16%.
“We think the recent pullback since Q1 earnings offers a particularly attractive buying opportunity as we see a path toward continued improvement in sales and margins as the innovation pipeline starts to scale,” the analysts wrote.
They highlighted Nike’s focus on accelerating product development and innovation, pointing to new technologies such as Aero-FIT and a series of lifestyle launches, including NikeSkims, Air Max 95000, and the GT Future.
“The recent launch of the Innovation Engine now improves on this by unifying the design and product teams across Nike, Jordan, and Converse, creating a system that scales innovation across the entire portfolio,” the analysts wrote.
The upcoming 2026 FIFA World Cup in North America also offers Nike a platform to showcase new products, the analysts believe.
“To bring innovation front and center to the consumer, Nike has been pivoting its marketing strategy from performance paid media to top of funnel brand campaigns and storytelling,” they wrote. “We think the 2026 FIFA World Cup hosted in North America starting in June 2026 will provide Nike with a megaphone to display new product globally, particularly its new Aero-FIT fabric,” they wrote.
Historically, Nike’s revenue growth during World Cup quarters has outpaced other quarters, averaging 13% compared with 9% from Q1 2011 to Q4 2023, the bank wrote.
Bank of America further noted the potential for Nike to expand its appeal to value-conscious consumers.
“Bringing more product <$100 to market should give Nike optionality to capture a trade down customer if broader discretionary demand slows into next year,” they wrote. “Nike has historically stratified its offerings well and we expect no different this time.”