Oppenheimer upgraded Nike (NYSE:) is set to outperform Perform in a note on Friday, raising its price target for the stock from $110 per share to $120.
The investment vehicle acknowledged that Nike had struggled significantly in recent quarters amid a “confluence of adverse external and internal hurdles,” which weighed significantly on revenue and profit growth.
While challenges remain for Nike, Oppenheimer analysts increasingly believe that the prices at which shares trade and near-term financial expectations for NKE are now largely “de-risked.”
The company believes Nike stock is poised for a gradual recovery as upper management’s efforts to refocus on product innovation and brand development take hold.
“Our now more constructive call on equities is generally focused on the medium to longer term,” said Oppenheimer, who also re-named Nike as a top pick for mega-caps.
