Nike Stock Plummets to 13‑Year Low as Analysts Remain Bearish

Nike’s shares opened at their lowest level since 2013 on Friday after the athletic‑wear giant reported mixed fiscal first‑quarter results. The company earned 48 cents per share, beating the 43‑cent consensus, but revenue fell short of expectations at $11.21 billion versus a forecasted $11.32 billion. Nike also forecast a high‑single‑digit revenue decline for fiscal 2027 and signaled further restructuring, including additional staff cuts, to “position Nike for long‑term growth.” Despite the earnings beat, the stock dropped about 9 % in premarket trading and was trading near $32 a share, its lowest point in more than a decade. Year‑to‑date losses now exceed 45 % as the firm grapples with slow demand in key markets, especially China, and a lack of innovation in its core footwear line.

Analyst commentary has turned increasingly cautious. Wells Fargo’s Ike Boruchow said, “It’s simply hard to find good news here…Numbers are again coming down (~25 % cut to Street EPS), growth may be two years away and valuation isn’t cheap.” Wells Fargo rates Nike equal‑weight with a $30 price target, implying roughly a 15 % downside from the recent close.

Goldman Sachs maintained a neutral stance and a $30 target, noting that strong performance‑business growth is offset by pressure in Sportswear, Jordan and China, and that margins will likely suffer as the company deleverages.

Morgan Stanley downgraded to underweight with a $27 target, warning that the first‑quarter earnings were supported by low‑quality revenue and that gross‑margin risks remain unresolved, with sales and EPS expected to deteriorate through the rest of the year.

Citigroup kept a neutral rating and a $32 target, highlighting a $2.5 billion cost‑saving program (about 5.5 % of FY26 sales) and suggesting that Nike’s turnaround may not accelerate until fiscal 2029.

Bank of America reiterated an underperform rating and a $24 target, citing limited visibility on a sales recovery and downside risk to the premium multiple.

Bernstein stands out with an outperform rating and a $45 target, though it acknowledges a growth slowdown and margin compression as Nike clears inventory and rightsizes its China wholesale business, while warning that management credibility must be rebuilt.

Overall, the mixed results and heightened uncertainty have left many analysts waiting for Nike’s November investor day for more clarity on the company’s long‑term strategy.

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