Benzinga | Jan 25, 2022 06:59AM EST

Wells Fargo Sees 20% Upside In This Footwear Brand - Read Why

* Wells Fargo analyst Kate Fitzsimons upgraded Nike Inc (NYSE:NKE) to Overweight from Equal Weight with an unchanged price target of $175, implying a 19.86% upside.

* Fitzsimons noted the stock's 12% year-to-date decline presents a "rare buying opportunity for this best-in-class global athletic name."

* The analyst expects accelerating trends for Nike in fiscal 2023, and recent channel checks in China suggest the brand can improve sequentially from Q2.

* Nike is well-positioned to retain its number one market share in the region in the longer term, Fitzsimons added.

* The analyst also cited greater confidence in Nike's China trajectory and a favorable risk/reward ahead of accelerating trends for the upgrade to Overweight.

* Price Action: NKE shares traded higher by 1.27% at $147.85 in premarket on the last check Tuesday.