RBC Capital Markets Sees Path to Growth for Nike (NKE), Reiterates Outperform Rating

NIKE, Inc. (NYSE:NKE) is included among the 14 Stocks on the Verge of Becoming Dividend Aristocrats.

On March 5, RBC Capital Markets reiterated an Outperform rating on NIKE, Inc. (NYSE:NKE). The firm maintained its $78 price target ahead of the company’s Q3 results. The analyst said Nike’s recovery in China remains an important factor shaping investor sentiment. That trend is expected to play out over the next one to two years, according to the research note. The firm also pointed to the strong execution currently seen at Adidas as a comparison. Based on that example, RBC said there is no clear reason Nike cannot return to growth.

A March 5 report from Reuters said the company expects to record about $300 million in pre-tax charges tied to severance costs as part of a restructuring effort. CEO Elliott Hill is leading the initiative as the company works to stabilize margins and refresh its product lineup in an effort to revive sales.

Nike cut about 775 jobs in the United States in January as part of a push to accelerate automation. The company’s Converse brand has also been reducing corporate roles. The changes are meant to better align its operating model with the parent company, according to a February Reuters report. Nike said most of the charges will be tied to employee severance costs. They are expected to be recorded in the third quarter of fiscal 2026. The company also noted in a regulatory filing that additional actions could follow, which may lead to further charges.

NIKE, Inc. (NYSE:NKE) designs, markets, and distributes athletic footwear, apparel, equipment, and accessories used in sports and fitness activities. The company operates across several regions, including North America, Europe, the Middle East and Africa, Greater China, and Asia Pacific and Latin America.

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