NIKE, Inc. Class B (NKE.US) is in the midst of the longest bear market in 40 years. UBS Group AG has found a bullish signal.

At the time when the stock price of Nike, Inc. Class B (NKE.US) experienced a historic retreat, Apple Inc. CEO Cook's significant increase in holdings combined with the latest research data from UBS Group AG suggests that this giant may be building a bottom, but a full recovery will still take time. Despite the overall low market sentiment, UBS Group AG analyst Jay Sole pointed out in a report to clients on Friday, the 26th, that UBS Group AG's latest global sportswear survey shows a bullish trend for Nike, Inc. Class B. UBS Group AG pointed out that the survey results indicate that two key strategies implemented by Nike, Inc. Class B's new CEO Elliott Hill - "return to wholesale channels" and "refocus on athletic attributes" are yielding results: Improved channel availability: The proportion of global consumers who find Nike, Inc. Class B products "easy to find" in physical stores and online has rebounded to a new high after declining from 2019 to 2022. Return to athletic attributes: The proportion of consumers who consider Nike, Inc. Class B "suitable for sports" has returned to peak levels from 2019. In addition, UBS Group AG listed five key data points showing the brand's strength: Top NPS globally: Nike, Inc. Class B's Net Promoter Score (NPS) is the highest among all brands, and ranks first and is trending upward in the four major regions surveyed (the US, UK, Germany, China). Strong brand attributes: Nike, Inc. Class B ranks first or second globally in categories such as "high-quality products," "suitable for sports," "well-known brand," "innovative brand," and "fashionable." Increased purchase intent: Global consumers plan to purchase more Nike, Inc. Class B shoes and clothing in the next 12 months. Improved brand perception: Global consumers' perception of Nike, Inc. Class B is improving, and the improvement rate is faster compared to other brands, with significant growth in the US. Highest loyalty: Nike, Inc. Class B has the highest customer loyalty rate and conversion rate globally. Cook's million-dollar "bottom fishing," internal vote of confidence At the same time, in the background of the company's stock price deep in the most significant bear market in forty years, there have been significant buying actions by senior executives within the company. According to SEC documents, Apple Inc. CEO and also Nike, Inc. Class B's Chief Independent Director Tim Cook recently invested about $2.9 million to "bottom fish." Cook purchased 50,000 shares of Nike, Inc. Class B stock at a weighted average price of $58.97 per share. After the transaction, Cook's total holding of Nike, Inc. Class B shares reached 105,480 shares, nearly doubling his personal holdings. In addition to Cook, another member of the Nike, Inc. Class B board recently purchased company shares. This endorsement from the core level is interpreted by the market as recognition of the company's long-term strategy and valuation, directly leading to a significant rebound in Nike, Inc. Class B stock price after the news was announced. Maintaining a "neutral" rating: Long road to recovery, valuation based on 2028 expectations Despite the positive signs shown in the survey data, UBS Group AG analyst Jay Sole still maintains a "neutral" rating on Nike, Inc. Class B stock. UBS Group AG believes that the strengthening of the brand's power has laid a foundation for Nike, Inc. Class B to make a comeback, but the process of turning losses into profits will take longer than market expectations. The current stock price does not fully reflect the time cost required for the recovery. The target price given by UBS Group AG is $62, based on its forecast of earnings per share (EPS) of $2.15 for the 2028 fiscal year, and a 29 times price-earnings multiple. In addition, the survey also revealed two moderately negative data points: Decline in perception among young people: In the 16-24 age group, global brand awareness for Nike, Inc. Class B has experienced slight erosion. The analysis suggests that this may be because Nike, Inc. Class B's brand popularity in the past few years is not as strong as before. Converse's performance is mediocre: The survey results for Converse are considered lacking highlights. This article was reprinted from "Wall Street Vision," by Long Yue; edited by GMTEight, Liu Jiayin.