Evercore ISI has downgraded Nike's stock from outperform to in-line and reduced its price target from $57 to $46, suggesting a potential upside of nearly 7% from its recent close. Analyst Michael Binetti noted that Nike's turnaround, which has been underway for about two years, is encountering unexpected setbacks in the wholesale channel and lacks significant innovation until at least 2027.
The company's shares have dropped 32% year-to-date, primarily due to profit-margin pressures linked to tariffs and a sales decline in China, a previously strong market for Nike. Binetti expressed concern that Nike may need to lower its fiscal year 2027 outlook to manage expectations, which could further distract from its recovery narrative.
This perspective aligns with the broader consensus on Wall Street, where 22 out of 41 analysts currently hold a 'hold' rating on the stock