Nike Shares Poised for Potential Rebound Ahead of Earnings

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%.

However, these low expectations could work in Nike’s favor, providing a low bar for the company to clear. This scenario played out successfully last quarter when Nike’s performance surpassed estimates by a remarkable 95%. Market strategists suggest that if CEO Elliott Hill’s “Win Now” strategy, built around five core pillars, begins to show tangible results, another positive surprise is a distinct possibility.

Should investors sell immediately? Or is it worth buying Nike?

Early indicators of a broader turnaround are beginning to surface. John Kernan, an analyst at TD Cowen, noted on September 10th that consumer interest in Nike is strengthening, while engagement with rivals like Adidas and New Balance is showing signs of softening. This subtle but important shift in brand momentum may represent the initial stage of the recovery RBC is forecasting.

From a technical perspective, the equity has already rallied 38% from its April low of $52, despite a minor pullback during September. The company currently hovers just above a $100 billion market capitalization, fighting to maintain its position among the market’s elite. RBC’s new $90 price objective suggests a potential 27% upside from recent trading levels.

The upcoming earnings report will serve as the ultimate test. Investors will meticulously examine key metrics, including North American sales trends, digital channel performance, inventory levels, and, crucially, the company’s guidance for the remainder of fiscal 2026. With the upcoming FIFA World Cup acting as a potential catalyst and new strategic initiatives under CEO Hill, Nike may be positioning itself for its next significant upward move. The stage appears set for a potential positive shift, and whether the apparel behemoth can meet bullish expectations will be revealed in less than two weeks.