Key Takeaways
- Nike shares are hovering around $36, dangerously close to the 52-week low of $35.22.
- Piper Sandler reduced its price objective to $38 while maintaining a Neutral stance ahead of the October 1 earnings release.
- Deutsche Bank dropped its forecast to $37, citing sluggish Chinese market conditions and shrinking margins.
- Evercore suggests wholesale partners may be canceling Spring 2027 orders, potentially forcing Nike to lower second-half projections.
- Consensus among analysts remains at Hold, with price objectives spanning approximately $37 to $47.
Shares of Nike are currently changing hands near the $36 mark, uncomfortably close to the annual bottom of $35.22. The athletic apparel giant has shed approximately 25% of its value following its most recent quarterly report and trades roughly 53% beneath its peak from twelve months ago.
The sportswear behemoth is scheduled to unveil its first-quarter fiscal 2027 results on October 1. Wall Street analysts are paying close attention, with research notes accumulating in recent weeks.
Piper Sandler slashed its price objective on Nike shares to $38 from $45 this Monday. The investment bank maintained its Neutral rating and highlighted the stock’s 42% decline year to date.
Deutsche Bank similarly reduced its forecast, adjusting from $45 down to $37 while retaining a Hold stance. This projection suggests merely 5% potential appreciation from present trading levels.
Both financial institutions identified identical concerns. Nike has already provided guidance indicating first-quarter revenue will decline by a low-to-mid-single-digit percentage, with the subsequent quarter potentially showing even weaker performance.
Wholesale Partners Potentially Scaling Back Future Orders
Evercore ISI analyst Michael Binetti highlighted an additional worry. His research indicates that certain retail partners appear to have scaled back or eliminated Spring 2027 purchase orders.
This development could compel Nike to revise downward its second-half fiscal 2027 projections ahead of its November investor day presentation. Current Wall Street consensus anticipates sales bottoming approximately 4% below prior-year levels during the first half, with stabilization expected in subsequent quarters.
Stifel analyst Peter McGoldrick pointed to disappointing reception for recent product launches. He additionally observed that Nike’s Hoops Classics collection, representing roughly 18% of total revenue, continues to contract.
Nike’s brand reputation has encountered setbacks as well. Football superstar Kylian Mbappe terminated his Nike partnership to sign with On Holding.
Dick’s Sporting Goods has reported that aggressive Nike promotional activity has negatively impacted portions of its business. Nike is attempting to liquidate legacy inventory while simultaneously directing consumers toward premium-priced new releases.
Divided Sentiment Among Wall Street Analysts
Analyst opinions on the stock remain fragmented. Jefferies and BTIG both maintain Buy recommendations, with Jefferies projecting first-quarter revenue of $11.5 billion.
Bank of America took the opposite approach, downgrading Nike to Underperform with a $30 price target. The institution pointed to sluggish sales momentum and intensifying competition from Adidas.
Goldman Sachs reduced its target to $38 while preserving its Neutral rating. StoneX initiated coverage with a Hold recommendation.
Piper Sandler’s proprietary model anticipates first-quarter revenue declining 3% with earnings reaching $0.37 per share, falling short of the consensus estimate of $0.43. The firm also reduced its gross margin projection by 40 basis points.
The Chinese market continues to represent a vulnerability. Pou Sheng, a Nike distribution partner operating in China, disclosed additional sales deterioration throughout July and August.
Nike’s previous quarterly results reflected revenue of $10.97 billion, representing approximately a 1% year-over-year decline. Earnings of $0.20 per share exceeded analyst expectations of $0.11.
Nike has also recently appointed a new CFO, providing leadership with additional justification to maintain conservative guidance until the November investor presentation. Nike is set to report first-quarter fiscal 2027 earnings on October 1, 2026.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
