RBC analyst Piral Dadhania noted that while Nike is making visible improvements, the progress is limited across its product range, leading to a downgrade from outperform to sector perform and a price target reduction to $50, reflecting a 12% potential upside from recent prices. Nike's shares have fallen over 70% since late 2021 and 45% since Hill's appointment.
Dadhania highlighted that although Nike maintains a leading position in lifestyle footwear, it faces stiff competition in running footwear from brands like On Running and Hoka, and in women's apparel from Vuori and Lululemon.
He anticipates that Nike's upcoming earnings report on June 30 could exceed estimates due to FIFA World Cup-related sales, but he does not expect improvements in its direct-to-consumer business.
Dadhania has also lowered his earnings per share forecast for Nike, citing weaker revenue growth and a slow recovery in profits, with concerns that the company's execution on product and inventory clearance may not yield positive revenue growth through the remainder of 2026