Jefferies Highlights Nike's (NKE) Strong Position, Maintains Buy Rating

On Friday, May 23, Jefferies analyst Randal Konik maintained a “Buy” rating on NIKE, Inc. (NYSE:NKE) with a price target of $115.

Konik’s decision comes after he noticed that HOKA, a competitor in the athletic footwear market, is showing signs of slowing sales growth. The analyst noted that HOKA’s year-over-year sales growth dropped to 10% in the fourth fiscal quarter, down from 24% in the third fiscal quarter and 35% in the second fiscal quarter.

Konik believes that NIKE, Inc. (NYSE:NKE) is positioned to gain market share because it is focused on innovation and bringing back wholesale channels. One example is the company’s partnership with Amazon. Even though NKE is trading near a 15-year low when measured by enterprise value-to-sales, the analyst still recommends buying the shares. He highlighted NIKE, Inc.’s (NYSE:NKE) global brand and leadership in athletic footwear as key reasons.

Additionally, the analyst pointed out that competition in the sneaker market is restricted and often underestimated. NIKE, Inc. (NYSE:NKE) has a large total addressable market because it offers products at diverse price points, which appeal to a wide range of consumers.

While we acknowledge the potential of NKE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NKE and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.