KeyBanc Downgrades Nike to Sector Weight, Cites Insufficient Progress on Turnaround Efforts]

KeyBanc Capital Markets downgraded Nike from overweight to sector weight, citing lack of meaningful progress on the company’s turnaround initiatives despite efforts to revitalize its business. The bank does not have a price target on Nike shares.

“While there are signs of progress, we do not believe they are sufficient to maintain an positive outlook,” analyst Ashley Owens wrote in a client note on Thursday. “Nike’s ‘Win Now’ actions have been in place for over a year, but efforts to restructure sportswear and address pressures in Greater China have not progressed as quickly as initially anticipated, while a reversal in trends across Europe, the Middle East and Africa raises additional concerns.”

Nike’s stock has fallen 36% year to date, pressured by margin challenges stemming from Trump administration tariff increases and sliding sales in China, which once represented a significant portion of the company’s revenue. The athletic apparel giant began overhauling its corporate strategy under CEO Elliott Hill approximately two years ago, with a plan focused on innovation and a return to core retail strategies. However, KeyBanc notes a lack of visibility into meaningful share appreciation as cleanup efforts continue.

The downgrade aligns with broader Wall Street sentiment, as 23 of 41 analysts covering Nike rate the stock as hold, according to LSEG data. This follows recent bearish commentary from other firms, including Evercore ISI, which also downgraded Nike shares earlier this week.

Source link