Nike Stock Alert: Jefferies Says “Buy Now” as Brand Rejoins Amazon Under New CEO

Nike Inc. (NYSE:NKE) is making headlines with its strategic return to Amazon after a five-year hiatus — a move investment firm Jefferies calls a smart play that signals strong future growth. With new CEO Elliott Hill at the helm, the sportswear giant is repositioning itself for broader market reach and long-term shareholder value.

Nike Returns to Amazon: A Bold Strategy for Global Expansion

Nike’s renewed partnership with Amazon, the world’s largest e-commerce platform, marks a pivotal moment for the brand. Jefferies analysts believe this move will strengthen Nike’s global distribution strategy and reaffirm its dominance in the athletic footwear industry.

Previously, Nike pulled its products from Amazon in 2019 due to concerns over counterfeit goods and unauthorised third-party sellers. The latest agreement addresses those issues, with Amazon now limiting sales of select Nike products to approved sellers only — a key shift that protects brand integrity.

CEO Elliott Hill’s Vision: Strategic Distribution and Growth

Jefferies praised Hill’s approach, stating that his leadership is “unlocking meaningful upside” for the company. His strategy includes realigning Nike’s wholesale channels, as seen in the brand’s new distribution deal with Urban Outfitters. These efforts are aimed at increasing Nike’s control over retail experiences while boosting reach through key partners.

“Nike continues to make well-timed, strategic decisions to grow its global presence and strengthen consumer loyalty,” Jefferies noted.

Competitive Edge Over Rivals: Nike vs. Lululemon and On

The firm highlighted Nike’s advantage over competitors like Lululemon and On, thanks to its diverse pricing strategy and broad product portfolio. With options that appeal to a wide range of consumers, Nike maintains a robust total addressable market (TAM) that supports sustainable revenue growth.

Upcoming Collaborations Fuel Brand Excitement

Nike is also generating buzz through high-profile collaborations — particularly the upcoming Nike x SKIMS apparel line, which is expected to reignite interest in the brand’s clothing segment. According to Jefferies, Nike’s apparel division is poised for strong momentum as consumer demand rebounds.

NKE Stock Forecast: Jefferies Sees Significant Upside

Despite positive market indicators, Jefferies believes Nike’s stock valuation remains “compressed”, presenting an attractive entry point for investors. The firm sees strong potential for NKE shares to gain value over the next 12 to 24 months.

(Sources: investing.com, reuters.com, ChatGPT)