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Several analysts cut their price targets on Nike stock on Friday, worried the turnaround could take longer than expected after the athletic apparel giant offered a sluggish outlook.
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Morgan Stanley analysts said Nike’s weaker-than-expected forecast for the current quarter suggested the trajectory could “get worse before it can get better,” with fiscal 2026 likely to be a “reset year.”
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Nike shares have lost nearly 30% of their value since the start of the year.
Several analysts have lowered their price targets for Nike (NKE) shares Friday, concerned the turnaround could take longer than expected after the athletic apparel giant offered sluggish guidance.
In Nike’s earnings call Thursday, new CEO Elliott Hill outlined several initiatives to get Nike growing again, from cutting back on promotional events to clearing out old inventory and investing in the company’s new product portfolio, but warned that these steps could take time and could weigh on short-term results. term.
Morgan Stanley analysts said Nike’s weaker-than-expected guidance for the current quarter suggested the trajectory could “get worse before it can get better,” with fiscal 2026 likely to be a “reset year.” They lowered their price target for Nike stock from $80 to $74, implying a decline from Friday’s closing price of $76.94.
Bank of America analysts also cut their price target to $90 from $95 on Friday, citing concerns about the weaker-than-expected forecast, though they said they believe Hill is using the right strategy.
Of the 20 analysts covering the stock covered by Visible Alpha, nine have a ‘buy’ or equivalent rating, nine give it a ‘hold’ rating and two have a ‘sell’ rating. Their average price target of $83, down from $87 before Thursday’s report, would indicate a decline from recent prices.
Nike shares were little changed to end Friday’s session, after recovering from earlier declines. Since the beginning of the year, they have lost almost 30% of their value.
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