Nike

Nike (NKE) is taking the right steps to improve its performance after its fiscal Q3 results pointed to challenging business fundamentals, UBS said in a note on Friday. The report said Nike is making changes that include bringing back the category offense and focus on sports, adjusting its DTC strategy and ramping marketing spend. “These changes are the right steps and will cause Nike’s business to inflect over the NTM, driving P/E expansion and stock outperformance,” said UBS analysts, including Jay Sole. UBS kept its buy rating while cutting its price target to $125 from $138. The analysts also said Nike’s brand image is still looking to regain momentum as its top selling shoes are not resonating with consumers as well as they once did. “Nike needs to add much more newness to its assortment to drive growth,” they said.

UBS says Nike’s 3Q was “disappointing” and shows business fundamentals remain challenging, but that restructuring changes should help the business inflect over the near term. The analysts say in a research note that Nike is taking the right steps, but it needs to add much more newness to its assortment to drive growth, as its top selling shoes are not resonating with consumers as well as they once did. UBS lowers its FY25 and FY26 sales estimates by 2.5% and 2.1%, respectively, and cuts its target price to $125 to $138. Shares slide 6% to $94.69.

Baird analyst Jonathan Komp maintains Nike (NYSE:NKE) with a Outperform and lowers the price target from $140 to $125.

Nike is partnering with the German Football Federation, replacing Adidas, who has been the federation’s sponsor for decades. The sneaker and apparel company has been awarded with this key contract, starting in 2027, CEO John Donahoe says on a call with analysts following the company’s latest results. “It was remarkable team effort and a great proof point that when Nike brings out our best, no one can beat us,” Donahoe says. The company didn’t disclose financial details of the deal. Shares drop 5.8% to $95.

By Inti Pacheco Nike reported flat sales for the quarter that ended Feb. 29, missing out on year-end holiday spending that lifted some brands. The sneaker giant reported higher sales in North America and China, offset by declines in Europe and its Converse brand. Nike said its direct-to-consumer sales were flat and its digital sales declined for the quarter. We are making the necessary adjustments to drive Nikes next chapter of growth, said CEO John Donahoe. In February, Nike said it would lay off about 2% of its workforce, or some 1,600 employees, as it works to reduce $2 billion in costs over the next three years. Shares of Nike were little changed in after-hours trading. In December, Nike cut its revenue outlook for the year and executives said they anticipated slower sales in the second half. The sportswear company has been dealing with more competition from rival brands in

Truist Securities analyst Beth Reed maintains Nike (NYSE:NKE) with a Hold and maintains $111 price target.

Karishma Vanjani Nike will unveil its report card for the most recent quarter this Thursday. There is uncertainty on Wall Street about what it will show. Sam Poser of Williams Trading downgraded the shoe company’s stock to a Sell rating from Hold early Monday, forecasting that the stock will hit $85, which is 15% below its closing price on Friday. “Nike is losing its luster” and management isn’t doing enough to make it shine, he wrote. The quarterly profits are likely to be lower than Wall Street expects, while the company is likely to cut its financial forecasts, Poser said. While the consensus call on Wall Street is that earnings will be 75 cents a share for Nike’s third fiscal quarter, Poser expects 73 cents. Nike didn’t immediately respond to a request for comment. Nike’s stock has lost more than 8% in value this year and has yet to rebound

Telsey Advisory Group analyst Joseph Feldman maintains Nike with a Outperform and lowers the price target from $140 to $120.

Nike’s (NKE) fiscal Q3 EPS could top market expectations when it releases its results March 21, with outperforming gross margin driving the upside, Morgan Stanley said in a Tuesday note. The investment firm said it also expects Nike’s gross margin to outperform in fiscal Q4 as it models underlying sales growth trend to continue into the last fiscal quarter. It added that Nike could keep its low guidance bar for Q4 and the full year due to recent market volatility and challenged core demand trends. Morgan Stanley said Nike’s return to high-single-digit revenue growth would be a “meaningful” catalyst for the stock, but this is unlikely in fiscal Q3 and could be seen in fiscal 2025 at the soonest. Morgan Stanley reiterated its overweight rating on Nike, while lowering its price target to $124 from $125 previously.

Nike’s (NKE) fundamentals for Q3 are “lackluster,” but likely aligning with sell-side expectations, UBS said in a report emailed Tuesday. “We don’t anticipate Nike changes its [fiscal year 2024] guidance or gives an initial view of FY25,” UBS said, adding that it doesn’t expect Nike’s report to change analysts estimates much. “We see a balanced upside/downside skew over the event,” UBS said. The upside risk is Nike’s margins outperform expectations, while downside risk is if sales fall short of expectations and sentiment proves more bullish than anticipated by investors, it added. According to UBS Quant Team’s crowding data, Nike is currently experiencing high levels of crowding, with a score of 27, which has risen notably in the past week. This score surpasses Nike’s five-year average of 19.2. “This matches what we hear in conversations with investors,” UBS said. “The market knows Nike has struggled recently, yet is looking at the

Nike (NKE) sentiment may be overly optimistic heading into its fiscal third-quarter results with checks suggesting the March 21 report will underscore lackluster fundamentals, according to UBS. The sports apparel retailer will likely post results that are downbeat but within expectations and leave its fiscal 2024 guidance unchanged, analysts Jay Sole, Tiffany Agard and Mauricio Serna wrote in a Tuesday note. UBS reiterated a buy rating and $138 price target on the stock. “The market is looking for an inflection in Nike’s sales growth trend, but probably won’t get one,” they wrote, adding that they see a balanced upside/downside skew over the event. Industry data show a sequential low-double-digit percentage decline in global web traffic to Nike.com during the quarter, according to the brokerage’s report. UBS reiterated its per-share earnings target of $0.78 for the third quarter but reduced its fourth-quarter estimate to $0.79 from a prior view of $0.83.

RBC Cuts Price Target on Nike to $110 From $120 Ahead of Fiscal Q3 Results, Keeps Outperform Rating.