Nike Shares Are Down 22% This Year: Why 2 Analysts Are Going Long

Nike Inc NKE is set to release its first-quarter earnings for fiscal year 2024 on Sept. 28 after the market closes, with Wall Street expecting earnings of 74 cents per share on revenues of $12.99 billion.

With shares down nearly 22% this year, two analysts are highlighting the prospective performance and trajectory of the sporting giant, providing insights into the underlying factors shaping investor sentiment.

What Do Nike Analysts Think?

Oppenheimer Analyst: Brian Nagel reiterated an Outperform rating on Nike with a $150 price target.

Oppenheimer’s Takeaways: Nagel underscored the continued demand in athleisure and rationalized channel inventories as pivotal points. The analyst highlighted Nike's forward four-quarter PE multiple of just 24.2x and views the subdued Street forecasts and guidance as achievable, hinting at possible upside for long-term oriented investors.

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Stifel Analyst: Jim Duffy maintained a Buy rating with a $13 price target.

Stifel’s Takeaways: Shares of Nike have underperformed since its last earnings print, reflecting uncertainties in various markets, Duffy said in a note. Yet the market is longing for proof of execution and the anticipated alleviation of transient impediments to margins set the stage for potential improvement across FY24, the analyst said. Brand relevance and tightened inventory positions play crucial roles, he added.

As Nike gears up to issue earnings, the athletic apparel titan remains under the scrutiny of analysts, with hopes for a show of strength in North America and Greater China, and affirmation of FY24 guidance.

The state of Nike’s inventory and a trajectory poised for quality growth and improved margin paint a strong picture of Nike's prospects. Yet the verdict hinges on the print and the company’s ability to soothe market anxieties and validate its forward guidance, with emphasis on execution and strategic adaptability in a dynamically evolving market landscape, Duffy said.

NKE Price action: Shares of Nike are trading down 1.58% Thursday at $92.57, according to Benzinga Pro.

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