Nike Gets A Wave Of Price-Target Cuts From Wall Street, But Retail Traders Are Not Totally Rattled

Several Wall Street brokerages lowered their price targets on Nike, Inc (NKE) between Friday and Sunday, following the sports apparel and shoes retailer's earnings report last week.

According to The Fly, Bernstein, Morgan Staley, JP Morgan, Well Fargo, UBS, Jefferies, Needham, TD Cowen, and RBC Capital, among others, cut their PTs.

Nike shares ended 5.5% lower on Friday, hitting five-year lows, as a dour quarterly forecast overshadowed a quarterly earnings beat.

Bernstein lowered its PT to $95 from $102 but maintained an 'outperform' rating.

In a note, the brokerage called Nike's Q3 report a "mixed bag" and said a continued drag from the inventory clearance offset the positive commentary on new pipeline and order book momentum.

Morgan Stanley cut its PT to $70 from $72 and kept an 'equal weight' rating. It said Nike's FY26 earnings per share could be lower than previously expected, and while the management's initiatives were on the right track, the road ahead is long and volatile.

Wells Fargo lowered its PT to $85 from $90. USB lowered its PT to $66 from $73. JP Morgan lowered its PT to $64 from $73.

Needham, TD Cowen, and RBC Capital lowered their PTs to $75, $65, and $92, respectively.

Nike expects revenue in its ongoing fourth quarter to decline in the mid-teens percentage range, more than a consensus estimate of a 12.2% drop, as per LSEG estimates from Reuters.

CFO Matthew Friend said sales "will begin to moderate" in the quarter as the company discounts items to clear old inventory.

On Stocktwits, retail investors' sentiment towards Nike was in the 'neutral' zone, a recovery from 'bearish' last week, with 'extremely high' message volume.

 

Nike sentiment and message volume as of March 21, 2025 | Source: Stocktwits

Several users posted positive comments about Nike, noting that the company has a huge brand recall, a strong financial footing with ample cash in the bank, and a buyback plan, and it was rebuilding relationships with retailers.

One user pointed to a bearish trend building in Nike shares, based on technical charts.

Currently, 17 of 38 analysts rate the stock 'hold,' while 19 have a 'buy or higher rating, according to Koyfin. 

Nike shares are down 10.2% year to date.

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