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Nike (NYSE: NKE) reported better-than-expected earnings for its 2025 fiscal fourth quarter, which ended on May 31. Although the company saw a 12% decline in sales compared to last year, Wall Street had anticipated earnings per share of only $0.12, while Nike reported $0.14, reflecting an 86% drop year-over-year.
Despite the sales decline, a Wall Street analyst predicts Nike’s stock could surge 60% in the next 12 to 18 months. New CEO Elliot Hill has initiated changes, focusing on innovation and expanding wholesale partnerships, which have already seen sales increases. However, Nike’s market share has dropped from around 60% to 49%, underscoring competitive pressures.
Several analysts have upgraded their price targets post-earnings, with HSBC setting a target of $80 and Jefferies maintaining a $115 target. Nike also offers a 2.2% dividend yield, appealing to passive income investors amidst ongoing challenges.
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