Nike can still reach its long-term targets and double its stock price, according to UBS. The firm reiterated a buy rating on Nike stock in a Tuesday note with a $150 per share price target. UBS’ forecast implies nearly 38% upside from Monday’s $108.77 close. Nike stock has slumped about 8% in 2023, underperforming the broad market by a wide margin. UBS analyst Jay Sole said if Nike can reach its company targets for fiscal year 2026, earnings per share could reach $6.50. “If the stock holds its P/E, then the stock could double. While this scenario is closer to our ‘bull case’ vs. our base case view which incorporates a global macro slowdown, it still has a reasonable probability of playing out,” Sole added. Nike stock is currently trading at a trailing price-to-earnings ratio of 33.7 times. NKE YTD mountain Nike stock has slipped more than 7% from the start of the year. Meanwhile, the analyst highlight Nike’s strong performance in China where the company remains the number one brand, and said its Jordan segment will also remain a strong growth driver overall. “Our view is as soon as the market starts to sense 2nd derivative sales growth rate and margin improvement, the stock will start moving higher,” Sole said. “This could happen when Nike’s reports Q1 earnings in late September or even sooner.” — CNBC’s Michael Bloom contributed to this report.
