Barclays Says Buy Nike Stock After Earnings Reset

Barclays has advised investors to consider buying Nike (NKE) stock, suggesting that the company’s latest disappointing financial results may mark the "final reset" of its earnings. Analyst Adrienne Yih, who maintains a Buy rating on NKE, argues that the recent downturn could signal the beginning of a turnaround under CEO Elliott Hill’s leadership. Although Yih lowered her price target from $48 to $37, she believes sales, margins, and profits will soon improve.

Nike’s stock is trading at its lowest level in 13 years, down 3% on October 5, 2026. The company has faced a brutal selloff this year, with shares plummeting 47% in 2026, making it one of the worst performers in the Dow Jones and S&P 500. Over the past five years, NKE stock has lost 77% of its value, erasing a decade of gains for long-term investors.

The company recently reported earnings per share of $0.48, beating expectations, but revenue of $11.21 billion fell short of forecasts. Sales declined 4% year-over-year, and management forecasted a high-single-digit percentage revenue drop for fiscal 2027. China, Nike’s second-largest market, saw a 26% sales decline in the latest quarter. CEO Elliott Hill stated the company is acting with urgency to improve performance in China and Asia. Job cuts are also planned for 2027.

Despite the challenges, Barclays remains optimistic that Nike’s worst days are behind it. The stock currently has a consensus Hold rating among analysts, with an average price target of $37.11, suggesting a 10% upside from current levels.