Nike Analysts Sour On Retailer's Short-Term Prospects Following Poor Outlook: 'No Quick Rebound'

Nike Inc NKE shares plummeted following bleak revenue numbers and lowered guidance in its fourth-quarter report.

Some analysts have soured on the Beaverton, Oregon-based company. Here’s what the Street is saying Friday after the print.

The Nike Analysts: The following analysts published notes on Friday.

• JPMorgan analyst Matthew R. Boss downgraded Nike from Overweight to Neutral, lowering the price target from $116 to $83.
• Goldman Sachs analyst Brooke Roach maintained a Buy rating, lowering the price target from $120 to $105.
• Bank of America analyst Lorraine Hutchinson maintained a Buy rating, lowering the price target from $113 to $104.
• RBC Capital Markets analyst Piral Dadhania maintained a Sector Perform rating with a price target of $100.
• UBS analyst Jay Sole downgraded Nike from Buy to Neutral, lowering the price target from $125 to $78
• Evercore analyst Michael Binetti maintained an Outperform rating, lowering the price target from $110 to $105.
• Raymond James analyst Rick B. Patel downgraded Nike from Outperform to Market Perform.
• Telsey analyst Cristina Fernández maintained an Outperform rating, lowering the price target from $115 to $100.
• KeyBanc analyst Ashley Owens maintained a Sector Weight rating.

JPMorgan On Nike: Boss jokingly labeled Nike’s lowered fiscal year 2025 estimates a “shoe doghouse” (a reference to co-founder Phil Knight’s 2016 memoir.) Boss sees Nike as more of a long-term play.

“While NKE is the global athletic market leader with diversification across product categories, geographies, and distribution, we see an elongated timeline for NKE to reaccelerate revenue growth in the midst of a franchise product lifecycle transition with the global macro backdrop (notably headwinds in Greater China & EMEA) further complicating the path forward,” the analyst said.

Goldman Sachs On Nike: Roach labeled Nike’s weak report as “unexpected” and “disappointing,” but remains encouraged by long-term company innovation.

“We are constructive on the company's accelerating multiyear innovation cycle…,” the analyst said. “However, on the other hand, this is offset by a surprisingly large deceleration in lifestyle category trends, which we believe are facing elevated competition.”

BofA On Nike: Hutchinson is still encouraged by Nike’s continued innovation.

“NKE is facing a slowdown in lifestyle sales head-on rather than letting inventory linger, and we think actions announced today will help create a healthier business over the medium term,” the analyst said. “The marketplace reset is already underway, and we are encouraged by early signs that innovation is resonating.”

Hutchinson believes that Nike management’s plan to continue investing for growth is the “right decision.”

RBC On Nike: Dadhania labeled fiscal year 2025 as a “transition year” focused on product and innovation.

“Whilst we appreciate its leading market share and structural competitive advantages, and have little doubt it will emerge stronger once these changes take place, we view the equity story and fair value as not indicating enough upside to be more constructive on the name at this point in its cycle.”

The analyst cited growth, unlikely to occur until calendar 2025, as a catalyst for future optimism.

UBS On Nike: Sole was discouraged by Nike’s quarterly performance.

“Nike’s 4Q report indicated its fundamental trends are much worse than we realized. Our key conclusion is there will be no quick rebound for Nike’s earnings.”

The analyst sees the next steps as a “multiyear reset.”

Evercore On Nike: Binetti remained bullish on Nike even after Thursday’s disappointment.

“We think NKE is doing many of the right things to clean up the over-inventoried retro business, accelerate innovation, and re-invest in the retail/consumer experience.”

Binetti likened Nike to a “big machine that will take time” amid a future turnaround.

Raymond James On Nike: Patel is discouraged by performance in global markets and other macro woes.

“We attribute Nike's challenges to not having enough innovation already (execution missteps from prior periods) and a worsening macro (a number of companies have called out a more difficult consumer backdrop ranging from Levi's to Walgreens to General Mills).”

The analyst is not assuming that Nike’s downwardly revised guidance is conservative given poor performance from key business segments.

Telsey On Nike: Fernández remains bullish on Nike amid “disappointing” sales guidance.

The analyst cited the increase of product introductions and partnerships with Dick’s Sporting Goods and Foot Locker as encouraging.

Fernández’s rating reflects “the likelihood of a brand turnaround,” now delayed to fiscal year 2026.

KeyBanc On Nike: Owens sees 2025 as a transition year amid struggles in Nike’s lifestyle brand and wholesale business. The analyst pointed to new products, innovation and brand marketing as catalysts to exceed expectations in today’s challenging macroeconomic conditions.

Price Action: Nike traded at $75.72 at the time of writing, down 19.6% on the day.

The company is on track for its worst day since 2001.

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