UBS reiterated a Neutral rating and a $62 price target on Nike Inc. (NYSE: NKE), citing improving brand momentum but a longer-than-expected turnaround timeline.

The firm said results from UBS Evidence Lab's 11th global sportswear survey were constructive for Nike, showing year-over-year improvement in brand strength and reinforcing confidence that the brand could support a recovery. Despite these positives, UBS maintained its Neutral stance, arguing that operational and financial improvements would likely take longer than current market expectations.

Since Elliott Hill assumed the CEO role, Nike had prioritized re-engagement with the wholesale channel. UBS noted that a higher proportion of consumers now reported Nike products were easy to find both in stores and online, reversing declines seen between 2019 and 2022 and reaching a new peak in the latest survey.

The analyst also said Nike's renewed focus on sports appeared to be resonating, with the percentage of consumers viewing the brand as “good for doing sports” returning to 2019 peak levels, supporting longer-term brand equity.