After several years characterized by declining revenues and contracting profit margins, the global sportswear leader Nike may be approaching a critical inflection point. In a significant shift in sentiment, financial institution Wells Fargo has upgraded its stance on the company, suggesting a potential end to its prolonged challenges.
A Vote of Confidence from Wall Street
On November 13, 2025, Wells Fargo analyst Ike Boruchow moved his rating for Nike from “Equal Weight” to “Overweight,” simultaneously lifting the price target substantially from $60 to $75. This new target implies an anticipated 17 percent upside from the current trading level. The analyst’s renewed optimism stems from a belief that a multi-year negative cycle is nearing its conclusion. Boruchow stated, “Nike has been in a negative revisions cycle for over three years, and we see this reversing over the next 6-9 months.”
He anticipates that the company is finally positioned to deliver realistic growth forecasts while executing significant improvements to its margins. Encouragingly, the classic shoe lines, which have been a persistent drag on performance, are now showing early signals of stabilization.
Turnaround Strategy Under CEO Elliott Hill
The company’s trajectory is being guided by a decisive strategic shift initiated upon the return of Elliott Hill as CEO in October 2024. The “Win Now” plan is an aggressive turnaround effort focused on revitalizing corporate culture, reinforcing brand strength, and streamlining the product portfolio. Recent collaborations, including a partnership with the fashion label Vaquera, underscore Nike’s enduring capacity to generate market excitement and brand engagement.
Despite a recent 12 percent drop in quarterly revenue to $11.1 billion for the fourth quarter of 2025, the company’s robust balance sheet and consistent cash flow generation provide a solid foundation for recovery. This financial stability could support Nike’s shares, which have declined 15 percent since the start of the year, in finding a footing and advancing from present levels.
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Stabilization in Core Classics and Growth in New Lines
A potential recovery appears to be building on two fronts. The iconic product lines, particularly the Air Force 1 and Air Jordan 1 models, are demonstrating signs of bottoming out based on industry channel checks and company commentary. The analyst’s timing thesis is compelling: the downturn cycles for Air Force 1 (63 months) and Air Jordan 1 (54 months) are nearing the typical historical duration of 40-70 months for such cycles.
Concurrently, momentum is accelerating in the non-classics segment. Updated models such as the Vomero and Pegasus are driving increased sales volumes, contributing to a more diversified growth profile. While Boruchow forecasts a decrease in revenue from classic products to $11.5 billion for the current fiscal year, he projects a stabilization at a lower, more sustainable base of $9 billion by 2026.
Financial Projections and the Path Forward
Wells Fargo’s outlook for Nike includes a return to sales growth of 3-4 percent by the end of 2026, accompanied by a meaningful margin expansion of 200 basis points. The upcoming quarterly report scheduled for December 18, 2025, will offer a critical early indicator of whether the “Win Now” strategy is beginning to yield tangible results.
The central question for investors remains: Can Nike, after a period of underwhelming performance, finally engineer a lasting recovery in its market valuation? The accumulating evidence suggests that the most severe phase of the company’s challenges may now be in the past.
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