Nike

Morgan Stanley analyst Alex Straton maintains Nike (NYSE:NKE) with a Overweight and lowers the price target from $125 to $124.

By Teresa Rivas Nike shares were higher on Monday, and at least one analyst thinks the company can snap its losing streak ahead of earnings next week. The stock was up 2.3% to $101.50 after Guggenheim analyst Robert Drbul named Nike shares his Best Idea, writing he sees it breaking out in 2024. He reiterated a Buy rating and $130 price target on the shares, arguing Nike’s recent underperformance — down more than 7% year to date — creates a compelling entry point. He believes “management is laying the groundwork for many launches of product to deliver an acceleration in top line growth in the second half of 2024 and into 2025.” In particular, Drbul is upbeat about Nike’s ability to make a comeback in the running category — a space that has become increasingly competitive with entrants such as On Holding and the Hoka brand from Deckers Outdoor. He

Nike (NYSE:NKE) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/16/2024 4.29% Oppenheimer → $110 Downgrades Outperform → Perform 12/28/2023 5.23% Truist Securities $107 → $111 Maintains Hold 12/22/2023 22.3% Stifel $135 → $129 Maintains Buy 12/22/2023 1.44% Piper Sandler $112 → $107 Maintains Neutral 12/22/2023 1.44% Truist Securities $108 → $107 Maintains Hold 12/22/2023 21.35% JP Morgan $139 → $128 Maintains Overweight 12/22/2023 11.87% BMO Capital $110 → $118 Maintains Outperform 12/22/2023 17.56% Raymond James $130 → $124 Maintains Outperform 12/22/2023 -1.4% TD Cowen $129 → $104 Downgrades Outperform → Market Perform 12/22/2023 21.35% Deutsche Bank $132 → $128 Maintains Buy 12/19/2023 23.25% Raymond James $121 → $130 Maintains Outperform 12/15/2023 32.73% Telsey Advisory Group $128 → $140 Maintains Outperform 12/12/2023 23.25% DZ Bank → $130 Upgrades Hold → Buy 12/11/2023 27.99% Citigroup $100 → $135 Upgrades Neutral → Buy 12/05/2023

Oppenheimer analyst Brian Nagel downgrades Nike from Outperform to Perform and announces $110 price target.

Nike’s long-term prospects remain compelling, but the sales trends in the next several quarters will probably remain sluggish given a combination of spotty consumer demand, lulls in product innovation and some modest incursions from competitors in certain categories, Oppenheimer analysts say in a research note. “While NKE is by no means broken, we believe that the company and its brand are transitioning, near-term,” the analysts say. They’re downgrading the stock to perform from outperform, and lowering the target price to $110 from $150. The analysts add that they’re “hard-pressed to envision the still-premium valuation of NKE climbing higher, until clearer signals of sustained, improved fundamental expansion emerge.” Nike slides 4% to $101.88.

By Inti Pacheco Nike on Thursday said that it will reduce its workforce by about 2%, or more than 1,600 people, in a bid to cut costs. Nike Chief Executive John Donahoe said the company is using its resources to increase investment in categories like running, women’s apparel and the Jordan brand, according to an employee memo reviewed by The Wall Street Journal. The cuts aren’t expected to affect employees in stores and distribution centers or those in its innovation team. The Beaverton, Ore.-based sneaker company had about 83,700 employees as of May 31. “This is a painful reality and not one that I take lightly. We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable,” Donahoe said in the memo. The job cuts are expected to start Friday and a second phase will be complete by the end of the quarter,

Nike (NKE) shares will likely have a difficult time recovering ground in the short-run after the athletic footwear maker cut its yearly sales outlook, Morgan Stanley said on Friday. The maker of Air Max, Air Jordans, and other sports shoes and accessories reduced its fiscal year revenue outlook to 1% growth, Chief Financial Officer Matthew Friend said on a conference call late Thursday, according to a Capital IQ transcript. It previously expected mid-single-digit percentage growth. Nike shares were sliding 10% to $109.67 during Friday’s session. The “disappointing” guidance overshadowed the company’s second-quarter profitability resilience, Morgan Stanley said in a note. “We aren’t hopeful for a (near-term) stock bounce,” given Nike’s elongated and uncertain path back to high-single digit revenue growth, according to the brokerage. The company’s revised guidance also dulled its “formerly compelling” rate-of-change story in the second half of the fiscal year. Friend said on the call that Nike’s

Nike’s (NKE) fiscal Q2 results were “solid” overall, though its full-year guidance disappointed, Morgan Stanley said Friday. Late Thursday, the athletic footwear and apparel maker reported that its fiscal Q2 per-share earnings rose to $1.03 from $0.85 a year earlier, while revenue advanced 1% to $13.39 billion. The report showed the “resilience” of the company’s profitability, Morgan Stanley said in a note. “While 2Q revenue growth remained uninspiring, it came in no worse than market expectations.” The firm cut its price target on the Nike stock to $124 from $132 while keeping its overweight rating. Nike lowered its fiscal year revenue outlook to 1% growth from its previous expectations of mid-single-digit percentage growth. “Although investors were braced for lower [2024] revenue guidance given the recent branded peer trend/results, the magnitude of [Nike’s] cut surprised to the downside,” Morgan Stanley said in the note.

CFRA analyst Zachary Warring underlined that Nike’s competitors could eat into some of the demand. “Although Nike maintains a fortress balance sheet with significant capital returns, we believe the multiple will trend back down to pre-pandemic levels as the company faces competition from brands like Hoka and On [Holding] while it looks for new growth drivers and focuses on cutting costs,” Warring said.

After posting softer-than-expected revenue guidance in its fiscal second-quarter earnings, Nike Inc. (NYSE:NKE) is banking on “newness and innovation” to drive growth. However, one analyst struck a discordant note, stating that its fastest-growing piece of business is at risk. What Happened: ‘Just Do It’ might not be working for Nike, but analysts were largely positive on the company’s prospects, with most ratings being “Buy,” “Outperform,” or “Overweight.” However, TD Cowen analyst John Kernan is not as optimistic about Nike’s strategy, casting doubt on the growth prospects of the sneaker maker. “Nike needs improved marketing outside of basketball, streetwear and lifestyle trends,” Kernan said in a research note on Friday, downgrading the stock from “Outperform” to “Market Perform.” “Nike faces disruption from smaller competitors in footwear and apparel. Jordan brand moving into lower price points and away from a scarcity model creates risk to the fastest-growing piece of the business,” Kernan

Nike (NYSE:NKE) Analyst Ratings Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 12/22/2023 18.08% Deutsche Bank $132 → $128 Maintains Buy 12/19/2023 19.93% Raymond James $121 → $130 Maintains Outperform 12/15/2023 29.15% Telsey Advisory Group $128 → $140 Maintains Outperform 12/12/2023 19.93% DZ Bank → $130 Upgrades Hold → Buy 12/11/2023 24.54% Citigroup $100 → $135 Upgrades Neutral → Buy 12/05/2023 28.23% Goldman Sachs → $139 Assumes → Buy 11/17/2023 -0.37% Truist Securities → $108 Initiates Coverage On → Hold 11/07/2023 14.39% Evercore ISI Group → $124 Initiates Coverage On → Outperform 10/06/2023 4.24% RBC Capital → $113 Reiterates Outperform → Outperform 09/29/2023 -15.13% Williams Trading $91 → $92 Upgrades Sell → Hold 09/29/2023 1.48% BMO Capital $120 → $110 Maintains Outperform 09/29/2023 16.24% Morgan Stanley $126 → $126 Reiterates Overweight → Overweight 09/29/2023 10.7% TD Cowen $117 → $120 Maintains Outperform 09/29/2023

Nike (NKE) said Thursday it now expects full fiscal year revenue to be up 1%, cutting its previous guidance of mid-single-digit percentage growth as it cites a slowdown in demand and a highly promotional environment. The company said it plans to save $2 billion in costs over the next three years by simplifying its product assortment, streamlining supply chains and reducing management layers, among other initiatives. Nike posted fiscal Q2 adjusted diluted EPS of $1.03 on revenue of $13.39 billion, higher than $0.85 on $13.32 billion a year earlier. Analysts polled by Capital IQ had expected $0.85 on $13.43 billion. However, Nike Chief Financial Officer Matthew Friend said in an earnings call that the company is “seeing indications of more cautious consumer behavior around the world in an uneven macro environment.” Nike shares fell 12.2% in recent Friday premarket activity. Price: 106.92, Change: -15.61, Percent Change: -12.74