Nike Inc (NYSE:NKE, XETRA:NKE)’s brand momentum appears to be improving, according Jefferies analysts, who reiterated a ‘Buy’ rating on the stock and a $110 price target.
Shares of Nike traded down 2.5% at about $62 on Thursday afternoon.
The analysts pointed to renewed consumer interest, improved retail execution, and strengthening digital trends as indicators that the company’s turnaround strategy is gaining traction.
One of the key signals highlighted was Nike’s return to the Lyst Index Top 20 Hottest Brands list for the first time in two years. The ranking, which tracks fashion demand based on data from more than 160 million shoppers, placed Nike at No. 19 for the fourth quarter of 2025.
The analysts believe that the inclusion reflects growing brand relevance, driven in part by recent collaborations and product launches.
High-profile partnerships such as NikeSKIMS, along with collaborations with Martine Rose and NOCTA, have helped broaden the company’s appeal across performance and fashion-oriented consumers, according to the firm.
The analysts wrote that the NikeSKIMS partnership has been particularly effective, noting that it “helped Nike reach a broader female audience and boosted visibility across both performance-focused and fashion-driven channels.”
They also pointed to the collaboration’s expansion into footwear with a ballet-inspired reinterpretation of the Air Rift tabi sandal.
Jefferies also cited improved in-store execution at key retail partners. Channel checks suggest merchandising and marketing have become more focused on core franchises, such as the Pegasus and Vomero running lines, which the analysts said help guide consumers through purchasing decisions.
Search volume data indicates continued strong consumer interest in Nike’s running products, with the Vomero ranking first among peers in average monthly search volume.
Digital data trends were also cited as a positive indicator. The analysts wrote that their proprietary tracker shows “continued improvement in Nike’s digital momentum,” with web traffic turning positive in December after declines earlier in the quarter.
They added that “this steady, multi-month improvement suggests momentum is building and indicates that mgmt’s strategic initiatives are gaining traction.”
Jefferies further pointed to Nike’s recent fiscal second-quarter results as evidence that the company’s turnaround is progressing, highlighting North America’s return to sales growth and progress in clearing excess inventory. With inventory levels normalized, the analysts expect Nike to emphasize its direct-to-consumer strategy and work toward restoring full-price selling in upcoming quarters.