Nike analysts concerned about retailer’s short-term outlook following poor outlook: ‘no quick rebound’ – Nike (NYSE:NKE)

Nike Inc NKE shares fell following dismal revenue figures and a lowered forecast in its fourth-quarter report.

Some analysts have been unhappy with the Beaverton, Oregon-based company. Here’s what the Street said Friday after publication.

Nike analysts: The following analysts issued notes on Friday.

• JP Morgan analyst Matthew R. Boss Nike downgraded 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 $100 price target.
• UBS analyst Jay Sole Nike downgraded its rating from Buy to Neutral, lowering the price target from $125 to $78
• Evercore analyst Michel Binetti maintained an outperform rating, lowering the price target from $110 to $105.
• Raymond James analyst Rick B. Patel Nike downgraded 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: The boss jokingly called Nike’s lowered 2025 fiscal year a “shoe niche” (a reference to the co-founder Phil KnightThese are memories from 2016.) Boss views Nike as a long-term play.

“While NKE is the global leader in the sports market with diversification across product categories, geographies and distribution, we anticipate a long timeline for NKE to re-accelerate revenue growth amid a cycle transition. franchise product life with the global macroeconomic backdrop (including headwinds in Greater China and EMEA), further complicating the path forward,” the analyst said.

Goldman Sachs on Nike: Roach called Nike’s weak report “unexpected” and “disappointing,” but he remains encouraged by the company’s long-term innovation.

“We are constructive about the acceleration of the company’s multi-year innovation cycle…,” the analyst said. “However, on the other hand, this is offset by a surprisingly significant deceleration in lifestyle category trends, which we believe are facing increased competition.”

BofA on Nike: Hutchinson remains encouraged by Nike’s continued innovation.

“NKE faces slowing sales of lifestyle products rather than allowing inventory to stagnate, and we believe the measures announced today will help create a healthier business in the medium term,” the analyst said . “The market reset is already underway, and we are encouraged by the early signs that innovation is resonating. »

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

RBC on Nike: Dadhania called fiscal 2025 a “transition year” focused on products and innovation.

“While we like its leading market share and structural competitive advantages, and are confident it will emerge stronger once these changes are made, we believe the equity story and fair value do not indicate enough upside potential to be more constructive on the name at this stage of its cycle.”

The analyst cited growth, unlikely before 2025, as a catalyst for optimism about the future.

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

“Nike’s fourth-quarter report indicates that its fundamental trends are much worse than we thought. Our main conclusion is that there will be no quick rebound in Nike’s earnings.”

The analyst sees the next steps as a “multi-year reset.”

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

“We believe NKE is doing many of the right things to clean up the overstocked retro sector, accelerate innovation and reinvest in the retail and consumer experience.”

Binetti compared Nike to a “big machine that will take time” in a future turnaround.

Raymond James on Nike: Patel is discouraged by the performance of global markets and other macroeconomic issues.

“We attribute Nike’s difficulties to the lack of innovation already present (execution errors from previous periods) and a deteriorating macroeconomic situation (a number of companies cited a more difficult consumer environment, ranging from Levi’s to Walgreens to General Mills). »

The analyst does not assume that Nike’s downwardly revised guidance is conservative given the poor performance of key business segments.

Telsey on Nike: Fernandez remains optimistic about Nike despite “disappointing” sales forecasts.

The analyst cited increased product launches and partnerships with Dick’s Sporting Goods And Foot locker also encouraging.

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

KeyBanc on Nike: Owens sees 2025 as a year of transition amid challenges for Nike’s lifestyle brand and wholesale business. The analyst highlighted new products, innovation and brand marketing as catalysts for exceeding expectations in today’s challenging macroeconomic conditions.

Price action: At the time of writing, Nike was trading at $75.72, down 19.6% on the day.

The company is on track to experience its worst day since 2001.

Read next:
• Allegations of corruption at Adidas lead to layoffs in China

Photo: pixfly on Shutterstock