Important points
Several analysts on Friday lowered their price targets for Nike (NKE) stock, raising concerns that the sports apparel giant’s recovery could take longer than expected after the company gave a weak outlook.
During Nike’s earnings call on Thursday, new CEO Elliot Hill outlined several initiatives to get Nike back on a growth path, from cutting back on promotional events to clearing out old inventory and investing in a new product portfolio. He warned that such a move would take time and could weigh on results in the short term. semester.
Morgan Stanley analysts say Nike’s weaker-than-expected outlook for this quarter suggests the company’s trajectory could “get worse before it gets better,” with fiscal 2026 set to be a “year of reset.” He said it is likely. They lowered their price target on Nike stock from $80 to $74, suggesting a decline from Friday’s closing price of $76.94.
Analysts at Bank of America also said they believe Mr. Hill is on the right strategy, but raised their price target to $90 from $95 on Friday, citing concerns about a weaker-than-expected outlook. I pulled it down.
Of the 20 analysts covering the stock tracked by Visible Alpha, nine have a buy or equivalent rating, nine have a hold and two have a sell. doing. The average price target is $83, down from $87 before Thursday’s report, which would suggest a decline from recent prices.
Nike stock ended Friday’s trading little changed after recovering from an earlier slide. They have lost nearly 30% of their value since the beginning of the year.
